1 briefly explain what determines the supply curve for, Ask an Expert

Finance

1. Briefly explain what determines the supply curve for reserves. Why does the supply curve have a horizontal segment?

2. Why does the interest rate that the Fed pays on reserves set a floor for the federal funds rate? What would banks do if the federal funds rate was below the interest rate on reserves?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92057695

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