Multiple Choice
Which of the following statements about the deposit facility in the Eurosystem are correct?
A) Banks are paid an interest rate that is typically 100 basis points below the target financing rate.
B) The prespecified interest rate on the deposit facility provides a floor for the overnight market interest rate.
C) The interest rate on reserves set by the ECB is not always positive.
D) All of the above.
E) Only A and B.
Correct Answer:
Verified
Correct Answer:
Verified
Q11: The equivalent to the Federal Reserve's discount
Q12: Everything else held constant,in the market for
Q13: The discount rate is kept _ the
Q14: The policy tool of changing reserve requirements
Q15: The interest rate on seasonal credit equals<br>A)the
Q17: Everything else held constant,in the market for
Q18: When good weather speeds the check-clearing process,float
Q19: Everything else held constant,in the market for
Q20: If float is predicted to increase because
Q21: To lower interest rates on residential mortgages