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Question 31 2.5 pts If the Fed charges 1.75% on loans to the depository institutions and pays 1% on the balances held in banks' reserve
Question 31 2.5 pts If the Fed charges 1.75% on loans to the depository institutions and pays 1% on the balances held in banks' reserve accounts, which of the following statement will be correct? The federal funds rate will be 1.75% The federal funds rate will be 0.75% The federal funds rate will be 2% The federal funds rate will be 1.25% Question 32 2.5 pts than the The interest rate on Overnight Reverse Repurchase agreements (ON RRP) is Interest on reserves (IOR) because O lower, non-bank financial institutions do not earn IOR lower, non-bank financial institutions earn IOR. higher, non-bank financial institutions do not earn IOR O higher, non-bank financial institutions earn IOR
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