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15 April, 09:25

Why does the Fed pay interest to banks?

It is interest on money held in reserve.

It is interest on credit available to the Fed.

It is interest on loans taken by the Fed.

It is interest on government investments.

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Answers (2)
  1. 15 April, 09:34
    0
    A.) It is interest on money held in reserve.
  2. 15 April, 09:54
    0
    The answer is a) it is interest on money held in reserve.
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