why does the fed pay interest to banks? 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. why does the fed pay interest to banks? 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 fed. It is interest on government investments. why does the fed pay interest to banks? It is interest on money held in reserve. What is the best description of what a central bank uses monetary policy to do? why does the federal reserve pay banks interest? Banks and other depository institutions are required to hold deposits with the federal reserve. A central bank's primary role is to create and implement monetary policy. Interest payments to banks. The federal reserve pays interest to banks as.
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