Historically, the excess reserves of banks have been ________ relative to checkable deposits, but during the crisis of 2008 the excess reserves of banks ________. (Fill in the blanks)

Question

Quizplus · Accepted Answer

Historically, banks held small excess reserves relative to checkable deposits. However, during the financial crisis of 2008, banks' excess reserves increased sharply as they sought to hold more liquid assets in response to financial uncertainty and changes in Federal Reserve policies.

Historically, the Excess Reserves of Banks Have Been ________ Relative