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U.S. Reserve Requirements

Question 66

Multiple Choice

U.S. reserve requirements


A) are rejected by half the banks operating in the United States.
B) show how regulatory asymmetries can operate to enhance the profitability of Eurocurrency trading.
C) tend to harm the bank's business and decrease monetary aggregates.
D) force banks to hold a portion of its assets in a liquid form easily mobilized to meet sudden deposit outflows.
E) remain in place, but capital requirements have begun defaulting.

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