What is interest on reserves (IOR)? Does a change in interest on reserves affect the demand curve for reserves or the supply curve for reserves? OA. It is interest paid by the Fed to banks on their reserve holdings at the Fed. A change in IOR causes a shift in the supply curve for reserves. OB. It is interest paid by banks when they borrow overnight from other banks. A change in IOR causes a shift in the supply curve for reserves. OC. It is interest paid by the Fed to banks on their reserve holdings at the Fed. A change in IOR causes a shift in the demand curve for reserves. D. It is interest paid by banks when they borrow overnight from other banks. A change in IOR causes a shift in the demand curve for reserves.
What is interest on reserves (IOR)? Does a change in interest on reserves affect the demand curve for reserves or the supply curve for reserves? OA. It is interest paid by the Fed to banks on their reserve holdings at the Fed. A change in IOR causes a shift in the supply curve for reserves. OB. It is interest paid by banks when they borrow overnight from other banks. A change in IOR causes a shift in the supply curve for reserves. OC. It is interest paid by the Fed to banks on their reserve holdings at the Fed. A change in IOR causes a shift in the demand curve for reserves. D. It is interest paid by banks when they borrow overnight from other banks. A change in IOR causes a shift in the demand curve for reserves.
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter13: Money And The Banking System
Section: Chapter Questions
Problem 17CQ
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