It is interest on money held in reserve. Banks and other depository institutions are required to hold deposits with the federal reserve. It is interest on money held in reserve.

Webwhy does the federal reserve pay banks interest? It is interest on money held in reserve it is interest on credit available to the fed it is interest on loans taken by the. Interest payments to banks. It is interest on government investments. What is the best description of what a central bank uses monetary policy to do? Webwhy does the fed pay interest to banks? It is interest on credit available to the fed.

What is the best description of what a central bank uses monetary policy to do? Webwhy does the fed pay interest to banks? It is interest on credit available to the fed. The federal reserve pays interest to banks as. Webwhy does the fed pay interest to banks? A central bank's primary role is to create and implement monetary policy. It is interest on loans taken by the fed.

A central bank's primary role is to create and implement monetary policy. It is interest on loans taken by the fed.