Interest Paid on Excess Reserves Held at the Fed

question 381

Multiple Choice

Interest paid on excess reserves held at the Fed

• A) is available to the general public, but not to commercial banks.
• B) will incentivize financial institutions to hold more reserves and reduce risky lending.
• C) is determined by the federal funds rate.
• D) totaled over $1 trillion in 2018.

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Definitions:

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to estimate the population parameter.

Supermarket Customers

Individuals or entities that purchase goods from a supermarket, a large self-service retail store selling groceries and various other products.

Variability

The degree to which data points in a dataset differ from each other and from their mean.

Sampling Distribution

The probability distribution of a given random-sample-based statistic.