ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Which of the following would cause banks to increase the amount of excess reserves that
they hold?
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a
b
Question 25.14
C
d
Loans to customers look safe and market interest rates are high compared to the
interest rate on excess reserves.
The economy is booming and there is a great demand for business loans.
Loans to customers look unusually risky or market interest rates are low
compared to the interest rate on excess reserves.
They anticipate a bank audit.
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Transcribed Image Text:Which of the following would cause banks to increase the amount of excess reserves that they hold? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b Question 25.14 C d Loans to customers look safe and market interest rates are high compared to the interest rate on excess reserves. The economy is booming and there is a great demand for business loans. Loans to customers look unusually risky or market interest rates are low compared to the interest rate on excess reserves. They anticipate a bank audit.
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