Multiple Choice
Which of the following is correct?
A) A bank's deposits at the Federal Reserves counts as part of the bank's reserves. The Federal Reserve pays interest on these deposits.
B) A bank's deposits at the Federal Reserves counts as part of the bank's reserves. The Federal Reserve does not pay interest on these deposits.
C) A bank's deposits at the Federal Reserves does not count as part of the bank's reserves. The Federal Reserve pays interest on these deposits.
D) A bank's deposits at the Federal Reserves does not counts as part of the bank's reserves. The Federal Reserve does not pay interest on these deposits.
Correct Answer:
Verified
Correct Answer:
Verified
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