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36. In a corridor system of monetary policy, which of the following is true? (A)The interest rate paid on central bank reserves tends to be

36. In a "corridor" system of monetary policy, which of the following is true?

  1. (A)The interest rate paid on central bank reserves tends to be higher than both money market rates and the central bank's lending facility rate.
  2. (B)The interest rate paid on central bank reserves tends to be lower than money market rates and the central bank's lending facility rate tends to be higher
  3. (C)Money market rates tend to be lower than both the interest rate paid on central bank reserves and the central bank lending facility rate.
  4. (D)Money market rates tend to be higher than both the interest rate paid on central bank reserves and the central bank lending facility rate.

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