17 If the Fed pays interest on reserves equal to the federal funds interest rate, would banks...

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17 If the Fed pays interest on reserves equal to the federal funds interest rate, would banks ever lend to each other in the federal funds market, given that loans in the federal funds market are made with no collateral requirements? How could the Fed encourage loans in the federal funds market while still paying interest on reserves?

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MandB 3

ISBN: 978-1285167978

3rd Edition

Authors: Dean Croushore

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