Reserve demand becomes horizontal at the IOER rate because:
A) banks will not make loans at less than the IOER rate.
B) banks must earn more than the IOER rate to lend.
C) the reserve supply is always set by the Fed so that the federal funds rate is greater than the IOER rate.
D) the IOER rate is the upper bound of the target federal funds rate
Correct Answer:
Verified
Q3: If the current market federal funds rate
Q4: Which of the following statements is most
Q5: The fact that there is a market
Q6: Which of the following statements is most
Q7: If the demand for reserves remains constant
Q9: If the market federal funds rate were
Q10: The conventional policy tools available to the
Q11: If the market federal funds rate were
Q12: Federal funds loans are: ?
A) secured loans between banks
Q13: Which of the following would be categorized
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