QUESTION 27 When the central bank purchases assets, it adds liquidity to the economy in the form of cash/reserves True False QUESTION 28 The federal funds rate is the interest rate the Fed charges on lending to banks. True False QUESTION 29 When you deposit your salary into your checking account, you are lending money to the bank. True False QUESTION 30 When a company borrows at LIBOR plus a spread, LIBOR is fixed until the loan's maturity while the spread changed periodically. True