Question

As part of its response to the financial crisis of 2007 and 2008, Federal Reserve Banks began paying interest on reserve deposits.
True / False.

Answer 1

Answer:  The correct answer is :  True

Explanation:  The federal reserve system is made up of the Board of Governors and the 12 banks of the general reserve. The most important among the Federal Reserve district banks in conducting monetary policy is the  New York bank Commercial bank reserves are a liability to the federal reserve bank that owns them.