Interest Paid on Reserves Held at the Fed

question 136

Multiple Choice

Interest paid on reserves held at the Fed:

• A) is available to the general public,but not to commercial banks.
• B) incentivizes financial institutions to hold more reserves and reduce risky lending.
• C) is determined by the federal funds rate.
• D) totaled over $1 trillion in 2012.

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Definitions:

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