If banks choose not to lend out their excess reserves,the money supply will not expand.

Name: If banks choose not to lend out their excess reserves,the money supply will not expand.
Brand: Quizplus
Rating: 4.9 (49 reviews)

Question

Quizplus · Accepted Answer

Excess reserves are the reserves that banks hold in addition to the required reserves. If banks choose not to lend out their excess reserves, then the money supply will not expand because the funds are not being circulated through loans to consumers or businesses.

If Banks Choose Not to Lend Out Their Excess Reserves,the