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Which of the following statements is NOT correct? A. Before the crisis, the US Federal Reserve did not pay interest on the balances of central
Which of the following statements is NOT correct?
A. | Before the crisis, the US Federal Reserve did not pay interest on the balances of central bank money. | |
B. | The interest rate on the fed funds balances created a floor for the Fed Fund rate. | |
C. | The US Federal Reserve introduced a rate on their lending facility in 2008. | |
D. | The US Federal Reserve, like the RBA, conducts an interbank rate targeting policy. | |
E. | In the US the overnight interbank rate is called the Fed Funds rate. |
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