Which of the following statements about the reserve market is
NOT correct?
A.
Without the discount window, the reserve market would not
function normally
B.
The reserve requirement affects the level of demand in the
reserve market
C.
Interest payments on reserves result in a floor for the federal
funds rate
D.
Interest payments on reserves and the presence of the discount
window lower the volatility of the federal funds rate
Which of the following statements about the reserve market is NOT correct? A. Without the discount window, the reserve
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