Which of the following statements about the supply of reserves
in the reserve market is true?
A.
The supply of reserves is horizontal (perfectly elastic)
above the discount rate, because banks would not lend
reserves in the reserve market at a rate above the discount
rate
B.
The supply of reserves is horizontal (perfectly elastic)
above the discount rate, because banks would not borrow
reserves in the reserve market at a rate above the discount
rate
C.
Only nonborrowed reserves are relevant for determining the
supply of reserves in the reserve market
D.
The supply of reserves is unrelated to the amount of securities
held by the central bank
Which of the following statements about the supply of reserves in the reserve market is true? A. The supply of reserves
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am