Question: Why does the Fed use the ON RRP rate as a supplement to the interest on reserve balances rate? Because financial institutions can earn interest

Why does the Fed use the ON RRP rate as a

Why does the Fed use the ON RRP rate as a supplement to the interest on reserve balances rate? Because financial institutions can earn interest on reserve balances plus the ON RRP rate Because the ON RRP rate is higher than the IORB rate Because financial institutions that cannot earn the IORB rate can earn the ON RRP rate Because financial institutions that cannot earn the ON RRP rate can earn the IORB rate Why does the Fed use the ON RRP rate as a supplement to the interest on reserve balances rate? Because financial institutions can earn interest on reserve balances plus the ON RRP rate Because the ON RRP rate is higher than the IORB rate Because financial institutions that cannot earn the IORB rate can earn the ON RRP rate Because financial institutions that cannot earn the ON RRP rate can earn the IORB rate

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