Banks are required to keep a minimum amount of funds in reserve because
A) Depositors may decide to withdraw funds at any time.
B) The Fed may decide to withdraw funds at any time.
C) The bank may decide to increase aggregate demand at any time.
D) Borrowers may decide to repay loans ahead of schedule.
Correct Answer:
Verified
Q50: Required reserves represent
A)A leakage from the flow
Q51: The banking system can lend the sum
Q52: The ratio of a bank's total reserves
Q53: Excess reserves are
A)Total reserves less required reserves.
B)Total
Q54: Suppose University Bank has zero excess reserves.If
Q56: The term fractional reserves refers to
A)The fact
Q57: Which of the following explains why banks
Q58: Initially a bank has a required reserve
Q59: When cash or coins are initially deposited
Q60: For a small bank in a large
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