Question
What are the two administered rates used to influence market equilibrium interest rates in the money market?
Multiple select question.
Interest rate on reserve balances
Flexible exchange rate
Overnight reverse repo rate
Fixed exchange rate
Discount rate
Multiple select question.
Interest rate on reserve balances
Flexible exchange rate
Overnight reverse repo rate
Fixed exchange rate
Discount rate
Answers
GPT-4o mini
The two administered rates used to influence market equilibrium interest rates in the money market are:
1. **Interest rate on reserve balances**
2. **Discount rate**
These rates are set by central banks (like the Federal Reserve in the U.S.) to help control monetary policy and influence overall economic activity.
1. **Interest rate on reserve balances**
2. **Discount rate**
These rates are set by central banks (like the Federal Reserve in the U.S.) to help control monetary policy and influence overall economic activity.