Banks are required to keep a minimum level of reserves on hand.The intent of this regulation is
A)monetary control rather than bank safety.
B)bank safety in case of bank runs.
C)maintenance of bank profits.
D)limiting the level of bank profits.

Question

Quizplus · Accepted Answer

The primary purpose of reserve requirements is to help central banks control the money supply and implement monetary policy, rather than to ensure bank safety or profitability.

Banks Are Required to Keep a Minimum Level of Reserves