In 2008, the Fed Began Paying Banks Interest on the Reserves

question 168

Essay

In 2008, the Fed began paying banks interest on the reserves they held at the Fed.
How did this change the incentives banks had for making loans?

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Definitions:

Ethnic Identification

The process by which an individual associates themselves with a specific ethnic group, sharing its customs, culture, and often language.

Nudity

The state of being without clothes, which can be a condition at birth, a part of personal life, artistic expression, or public protest.

Sexual Activity

Actions involving sexual relations between individuals, including but not limited to intercourse.

Experimentation

The process of trying out new ideas, methods, or activities to discover something unknown or test a hypothesis.