Which statement is true?

Question

Quizplus · Accepted Answer

The statement "The banks have received interest on their reserves since October,2008" is true. This is in reference to the Federal Reserve's policy to pay interest on both required and excess reserves held by banks since October 2008. Option A is incorrect because banks do not get a significant part of their total revenue from interest on their primary reserves, as these reserves are typically held to meet reserve requirements and not primarily for earning interest. Option B is also incorrect because banks try to hold only the required reserves and minimize excess reserves. Option C is incorrect because all banks in the US are subject to reserve requirements of the Federal Reserve.

Which Statement Is True