Prior to 2008, bank managers in the U.S. looked on reserve requirements ________.

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Before 2008, bank managers in the U.S. viewed reserve requirements as a tax on deposits. This is because banks were required to hold a certain percentage of their deposits in reserves, which limited the amount of money they could lend out and earn interest on. So, in a sense, reserve requirements acted as a tax on the deposits that banks received.

Prior to 2008, Bank Managers in the U