In July of 2008 federal regulators seized IndyMac in what the government called the second largest bank failure in U.S. history. Many customers stood in long lines outside the bank to withdraw their money. Explain why it is important for banks to keep excess reserves even though keeping too much is costly because they don't earn interest for the bank.

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The Answer of In July of 2008 federal regulators seized IndyMac in what the government called the second largest bank failure in U.S. history. Many customers stood in long lines outside the bank to withdraw their money. Explain why it is important for banks to keep excess reserves even though keeping too much is costly because they don't earn interest for the bank.

In July of 2008 Federal Regulators Seized IndyMac in What