Before October 2008, banks earned interest on reserve balances that they held at the Federal Reserve at a rate of
A)0.00%.
B)0.05%.
C)0.60%.
D)1.00%.

Name: Before October 2008, banks earned interest on reserve balances that they held at the Federal Reserve at a rate of A)0.00%. B)0.05%. C)0.60%. D)1.00%.
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

Before October 2008, banks did not earn any interest on reserve balances held at the Federal Reserve, which means the interest rate was 0.00%.

Before October 2008, Banks Earned Interest on Reserve Balances That