Question
When comparing the market for reserves with the actual interbank market, we conclude that ________________. A. the demand in the market for reserves is also
When comparing the market for reserves with the actual interbank market, we conclude that ________________.
A. | the demand in the market for reserves is also the demand in the actual interbank market. | |
B. | The supply in the market for reserves is also the supply in the actual interbank market. | |
C. | The intersection of the demand and supply in the market for reserves is at the same interest rate as the intersection if the demand and supply in the actual interbank market. | |
D. | The banks who needs to lend are captured in the supply side of both markets. | |
E. | All answers above are correct. |
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