In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement ________ the demand for reserves, ________ the federal funds rate, everything
else held constant. A) decreases; lowering
B) increases; lowering
C) increases; raising
D) decreases; raising
C
Economics
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Since 2008, excess reserves have increased from:
A. $2 billion to almost $3 billion. B. $2 billion to almost $3 trillion. C. $2 trillion to almost $3 trillion. D. $3 billion to almost $2 trillion.
Economics
The greater the risk of nonrepayment of a loan, other things being equal
A) the longer is the repayment term. B) the lower is the charged loan fees. C) the higher is the rate of interest. D) the smaller is the amount of collateral that is used.
Economics