The primary purpose of the legal reserve requirement is to
A) prevent banks from hoarding too much vault cash.
B) provide a means by which the monetary authorities can influence the lending ability of commercial banks.
C) prevent commercial banks from earning excess profits.
D) provide a dependable source of interest income for commercial banks.
Correct Answer:
Verified
Q1: Q2: Which of the following statements is correct? Q4: Which of the following are all assets Q5: The goldsmith's ability to create money was Q6: When the receipts given by goldsmiths to Q7: A fractional reserve banking system Q8: Suppose a commercial bank has checkable deposits Q9: A bank that has liabilities of $150 Q10: Which of the following describes the identity Q11: In a fractional reserve banking system,
A)
A) is susceptible
A) bank
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