Using the market for reserves show how Bank of kenya's standing liquidity facilities at the bank rate (ib) provide a ceiling for fluctuations in the overnight rate. b. Using the market for reserves to...

Extracted text: Using the market for reserves show how Bank of kenya's standing liquidity facilities at the bank rate (ib) provide a ceiling for fluctuations in the overnight rate. b. Using the market for reserves to show the effect of a net government receipts from the public on the overnight funds rate, level of non-borrowed and borrowed reserves. [Hint: When government receives money from the public which is paid by writing cheques on people's deposits which curve will be effected and in which direction]