Legal reserve requirements serve to: (Check all that apply) A. Ensure stability in the banking system B. Make banks have less profit C. Create a demand for money D. Control the Money Supply E. Create high barriers to entry for smaller banks

Legal reserve requirements serve to: (Check all that apply) A. Ensure stability in the banking system B. Make banks have less profit C. Create a demand for money D. Control the Money Supply E. Create high barriers to entry for smaller banks

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter14: Money And Banking

Section: Chapter Questions

Problem 3AA

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Question

Legal reserve requirements serve to: (Check all that apply)

	A.	Ensure stability in the banking system
	B.	Make banks have less profit
	C.	Create a demand for money
	D.	Control the Money Supply
	E.	Create high barriers to entry for smaller banks

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