17. Comment on this statement by an official of the Federal Reserve: [The Fed] can control nonborrowed

Question:

17. Comment on this statement by an official of the Federal Reserve:

[The Fed] can control nonborrowed reserves through open market operations [but] it cannot control total reserves, because the level of borrowing at the discount window is determined in the short run by the preferences of depository institutions.17

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Foundations Of Global Financial Markets And Institutions

ISBN: 9780262039543

5th Edition

Authors: Frank J. Fabozzi, Frank J. Jones, Francesco A. Fabozzi, Steven V. Mann

Question Posted: