If the fed wants the federal funds rate to be at if1, what quantity of reserves do they need to make available to banks is Qf1.
Given,
referring to the diagram in the image, the fed wants the federal funds rate to be at if1.
The Federal Open Market Committee's (FOMC) target interest rate is referred to as the federal funds rate (FOMC).
The rate at which commercial banks overnight lend and borrow each other's surplus reserves is the aim.
The FOMC, the Federal Reserve System's decision-making body, convenes eight times a year to determine the target federal funds rate, a component of its monetary policy.
This aids in fostering economic expansion.
When the amount of money demanded at the interest supplied, which is Qf1, the reserve fund supply or money supply from the fed curve is vertical at the quantity supplier equilibrium of an interest rate is feasible.
Hence, The Fed will provide Qf1 reserves.
Learn more about federal reserves:
https://brainly.com/question/999538
#SPJ4
