https://homeworkspool.com/wp-content/uploads/2021/02/logo.png 0 0 Davie https://homeworkspool.com/wp-content/uploads/2021/02/logo.png Davie2019-06-26 13:29:422019-06-26 13:29:42finance its credit policy
finance its credit policy
Suppose that to finance its credit policy, the Fed pays an annual interest rate of 0.25 percent on bank reserves. During the course of the current year, banks hold $1.4 trillion in reserves.
What is the total amount of interest the Fed pays banks during the year? The Fed pays banks $___________ billion of interest during the year.