Since the European Central Bank ________ interest on reserves,banks have a ________ cost of complying with reserve requirements when compared to banks complying with the reserve requirements of the Federal Reserve.

Question

Quizplus · Accepted Answer

The European Central Bank pays interest on reserves, which reduces the cost for banks to comply with reserve requirements compared to the Federal Reserve, which does not pay interest on reserves.

Since the European Central Bank ________ Interest on Reserves,banks Have