U.S. commercial banks. This is primarily due to the fact that:
A. The banks in the euro area can count more assets as reserves.
B. The European Central Bank pays interest on reserves, the Fed does not.
C. The European Central Bank has a much higher required reserve rate.
D. All of the above.
Answer:B
U.S. commercial banks. This is primarily due to the fact that:
A. The banks in the euro area can count more assets as reserves. B. The European Central Bank pays interest on reserves, the Fed does not. C. The European Central Bank has a much higher required reserve rate. D. All of the above.