When the Fed provides more reserves toprovides more reserves


When the Fed
provides more reserves toprovides more reserves to
the banking system, the money banks have to lend to each other


falls
rises
,
and the federal fund rate


rises
falls
.

Solution

When the Fed provides more reserves to the banking system, the money banks have to lend to each other rises and the federal fund rate falls. (due to increase in money supply)

 When the Fed provides more reserves toprovides more reserves to the banking system, the money banks have to lend to each other falls rises , and the federal fu

Get Help Now

Submit a Take Down Notice

Tutor
Tutor: Dr Jack
Most rated tutor on our site