Why is paying interest on reserves an important tool for the Federal Reserve in managing crises?

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The Economics of Money Banking and Financial Markets

ISBN: 978-0133836790

11th edition

Authors: Frederic S. Mishkin

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Question Posted: Nov 03, 2017 04:03 AM

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Why is paying interest on reserves an important tool for the Federal Reserve in managing crises?

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During crises the Fed may need to provide a large amount of li...View the full answer

The Economics of Money Banking and Financial Markets

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