If the demand for reserves remains constant and the market federal funds rate is below the target rate, the Fed would: ?

Name: If the demand for reserves remains constant and the market federal funds rate is below the target rate, the Fed would: ?
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Question

If the demand for reserves remains constant and the market federal funds rate is below the target rate, the Fed would: ?

Quizplus · Accepted Answer

Increasing the Interest on Excess Reserves (IOER) would encourage banks to hold more reserves, reducing the supply of reserves in the market and helping to raise the federal funds rate towards the target rate.

If the Demand for Reserves Remains Constant and the Market