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How Does the Reserve Policy of the European Central Bank

Question 71

Multiple Choice

How does the reserve policy of the European Central Bank (ECB) differ from the reserve policy of the Fed?


A) The ECB has a required reserve ratio of 100%.
B) The ECB pays interest on reserve balances.
C) The ECB does not apply reserve requirements to checkable deposits.
D) The ECB applies the same required reserve ratio to all banks and all deposits.

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