1. Explain, perhaps with a simple example, how an overnight reverse repo agreement is equivalent to the Fed providing pr

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1. Explain, perhaps with a simple example, how an overnight reverse repo agreement is equivalent to the Fed providing pr

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1. Explain, perhaps with a simple example, how an overnightreverse repo agreement is equivalent to the Fed providing privatebanks a safe source of interest income.
2. Explain, perhaps with some simple examples, how the Fed usesIOER and ON RPP to influence interest rates.
3. What are the consequences of the Fed paying IOER on the moneysupply. Why do they pay it?
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