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Question
Within the European Central Bank, banks with excess reserves:A. can deposit them with the ECB and earn an interest rate below the target refinancing rate.
B. earn no interest on excess reserves, similar to the system in the U.S.
C. must deposit the excess with the ECB's Deposit Facility.
D. none of the above answers is correct; there are no required reserves for the ECB and so therefore no excess reserves.
Answer
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