If commercial banks hold all their assets in the form of required reserves:

Name: If commercial banks hold all their assets in the form of required reserves:
Brand: Quizplus
Rating: 4.7 (50 reviews)

Question

Quizplus · Accepted Answer

When commercial banks hold all their assets in the form of required reserves, they cannot lend out any money, thus they cannot create money through the process of making loans. Only the central bank can influence the money supply directly, for instance, by altering reserve requirements or conducting open market operations.

If Commercial Banks Hold All Their Assets in the Form