In 2017, some banks in Europe had to make interest payments to borrowers rather than receive interest payments from borrowers. Which of the following statements describes this situation?
A) For these banks, the loans increased required reserves.
B) These banks were receiving negative nominal interest rates on these loans.
C) For these banks, the loans were liabilities instead of assets.
D) All of the above are correct.
Answer: B
You might also like to view...
The goals of monetary policy tend to be interrelated. For example, when the Fed pursues the goal of ________, it also can achieve the goal of ________ simultaneously
A) high employment; economic growth B) stability of financial markets; a low current account deficit C) high employment; lowering government spending D) economic growth; a low current account deficit
In the base year the price index
A) will be between 1 and 100. B) will always equal 100. C) equals 100 times the cost of the market basket in the base year. D) will equal the year.