In 2008, the Fed began paying banks interest on the reserves they held at the Fed.
How did this change the incentives banks had for making loans?

Name: In 2008, the Fed began paying banks interest on the reserves they held at the Fed. How did this change the incentives banks had for making loans?
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The Answer of In 2008, the Fed began paying banks interest on the reserves they held at the Fed.
How did this change the incentives banks had for making loans?

In 2008, the Fed Began Paying Banks Interest on the Reserves