The federal funds rate is the interest rate that
A: banks charge their best corporate customers
B: banks have to pay when they get a loan from the Fed
C: banks have to pay when they get a loan from another bank
D: banks receive from the Fed for the reserves they hold as deposits at the Fed
E: the federal government pays on its three-month Treasury bills
A: banks charge their best corporate customers
B: banks have to pay when they get a loan from the Fed
C: banks have to pay when they get a loan from another bank
D: banks receive from the Fed for the reserves they hold as deposits at the Fed
E: the federal government pays on its three-month Treasury bills
举一反三
- Which of the following actions by the Fed would reduce the money supply? A: an open-market purchase of government bonds B: a reduction in banks’ reserve requirements C: an increase in the interest rate paid on reserves D: a decrease in the discount rate on Fed lending
- The Fed can influence the federal funds rate by adjusting the level of reserves in the banking system.
- 8， is the interest rate banks charge their best and most reliable customers.
- Banks are able to create money only when ( ) A: the reserve ratio is 100%. B: the Fed sells U.S. government bonds. C: interest rates are above 2%. D: only a fraction of deposits are held in reserve.
- The procedures for opening a checking account （）. A: are completely the same for all banks B: are completely different for all banks C: vary a little from bank to bank D: have to be accepted by the customers