In the market for reserves, market equilibrium occurs where the ________.
A) quantity of reserves demanded equals the quantity supplied
B) quantity of reserves demanded is above the quantity supplied
C) quantity of reserves demanded is below the quantity supplied
D) quantity of reserves demanded does not equal the quantity supplied

Question

Quizplus · Accepted Answer

In market equilibrium, the quantity of reserves demanded equals the quantity supplied, which means that there is neither excess demand nor excess supply. This is the point where the market clears and there is no pressure for the price to change. Therefore, choice A is the correct answer.

In the Market for Reserves, Market Equilibrium Occurs Where the ________