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MO-Economics
Monetary Policy: The Federal Reserve
Question 3
3
Quiz
Multiple Choice
Monetary Policy: The Federal Reserve
Question 3 • MO-Economics
Why does the Fed pay interest to banks?
Answer
A
It is interest on money held in reserve.
B
It is interest on credit available to the Fed.
C
It is interest on loans taken by the Fed.
D
It is interest on government investments.
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