Question 35 1.5 pts Why does reserve demand turn horizontal at the IOER rate? D) The IOER rate is the upper bound of the target federal funds rate. A) Banks will not make loans at less than the IOER rate. OC) The reserve supply is always set by the Federal Reserve so that the federal funds rate is greater than the IOER rate. OB) Banks must earn more than the IOER rate to lend. Question 36 1.5 pts Since the financial crisis of 2007-2008 in the United States, reserves have been so plentiful that the OB) Fed cannot affect the federal funds rate. OC) Fed prefers to target the discount rate O Al federal funds rate is not easily manipulated with open market operations OD IDER interest rate on excess reserves) is ineffective