Why does the Fed use the ON RRP rate as a supplement to the interest on reserve balances rate? Because financial institutions can earn interest on reserve balances plus the ON RRP rate Because the ON RRP rate is higher than the IORB rate O Because financial institutions that cannot earn the IORB rate can earn the ON RRP rate Because financial institutions that cannot earn the ON RRP rate can earn the IORB rate
Why does the Fed use the ON RRP rate as a supplement to the interest on reserve balances rate? Because financial institutions can earn interest on reserve balances plus the ON RRP rate Because the ON RRP rate is higher than the IORB rate O Because financial institutions that cannot earn the IORB rate can earn the ON RRP rate Because financial institutions that cannot earn the ON RRP rate can earn the IORB rate
Chapter13: The Federal Reserve System
Section: Chapter Questions
Problem 11QP
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