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All the ones that are highlighted are my answers and are wrong. Please help! 1)Everything else...

All the ones that are highlighted are my answers and are wrong. Please help!

1)Everything else held​ constant, in the market for​ reserves, when the supply for federal funds intersects the reserve demand curve on the downward sloping​ section, decreasing the interest rate paid on excess reserves

A.has no effect on the federal funds rate.

B.lowers the federal funds rate.

C.increases the federal funds rate.

D.has an indeterminate effect on the federal funds rate.

2) Recently, overnight reverse repurchase agreements otherwise known as the repo​ market, has been in the news. Which of the following statements is the most accurate explanation of how this all got​ started?

A.None of these three possible answers listed here are accurate.

B.Originally, interest on reserves was only available for Fed member banks and other non member financial institutions were not​ included, thus the repo market was created for these other non member institutions.

C.Originally, interest on reserves was only available for non Fed member banks and Fed member banks were not​included, thus the repo market was created for these member banks.

D.The repo market was created to help the Fed increase the federal funds rate between 2015 and 2018.

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Answer #1

option (A ie it has no effect on the federal tunda rate 9 Reverne repurchase aqueements are cued by Central bank to abrorb th

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