The Weekend Quiz – November 19-20, 2016
Welcome to The Weekend Quiz, which used to be known as the Saturday Quiz! The quiz tests whether you have been paying attention or not to the blogs I post. See how you go with the following questions. Your results are only known to you and no records are retained.
I thought 3. was true. Perhaps it depends on the target rate, and whether it’s the same as the rate of interest on reserves or not (but I thought it always was). Will be interesting to see the solution.
Yes, you are right. For 3 to be “true” the support rate on reserves should be equal to the policy rate, but it only says the support rate is positive, so we don’t know.