The primary reason commercial banks must keep required reserves on deposit at the Fed is to

Name: The primary reason commercial banks must keep required reserves on deposit at the Fed is to
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By requiring banks to keep a portion of their deposits as reserves with the Fed, the central bank can influence the amount of money that banks can lend out. This, in turn, affects the overall level of economic activity in the economy. The other choices are not the primary reason for required reserves.

The Primary Reason Commercial Banks Must Keep Required Reserves on Deposit