Banks hold people's cash for free, and sometimes even pay for the privilege of holding it, because:
A) they are nice.
B) deposits allow banks to make profitable loans.
C) the Federal Reserve requires that they do so.
D) the cash can be deposited at the Federal Reserve Bank to earn interest.
Correct Answer:
Verified
Q72: Credit cards:
A)reduce the value of holding money.
B)create
Q73: A commercial bank is a financial institution
Q74: The goldsmith's ability to create money was
Q75: If the reserve requirement is 20 percent,
Q76: Bank reserves are:
A)real assets deposited at banks.
B)cash
Q78: If you purchase a good on credit,
Q79: A commercial bank's reserve ratio equals the
Q80: Liability management refers to:
A)a bank's handling of
Q81: A bank has a reserve requirement of
Q82: If banks hold excess reserves whereas before
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