The Fed Prefers That ________ So That ________

question 63

Multiple Choice

The Fed prefers that ________ so that ________.

• A)banks borrow reserves from each other;banks can monitor each other for credit risk
• B)banks borrow reserves from each other;the Fed can monitor banks for credit risk
• C)banks borrow reserves from the Fed;banks can monitor each other for credit risk
• D)banks borrow reserves from the Fed;the Fed can monitor banks for credit risk