Interest on Reserve Balances (IORB) is the interest rate that ________ on the reserves balances held at the Federal Reserve.

Question

Multiple Choice
banks pay the Federal Reserve
the Federal Reserve pays banks
the Federal Reserve pays non-bank financial institutions
banks pay other banks

Answer 1

Interest on Reserve Balances (IORB) is the interest rate that the Federal Reserve pays banks on the reserves balances held at the Federal Reserve.