4 ms·
No, while they can borrow reserves from the central bank (Federal Reserve if you're in the US), they can't 'lend those reserves out'. Those reserves are mostly
by stephen_g 4y ago
No, while they can borrow reserves from the central bank (Federal Reserve if you're in the US), they can't 'lend those reserves out'. Those reserves are mostly useful for liquidity. The way that the reserve rate affects mortgage rates is more complicated.