Exploring Macroeconomics
8th Edition
ISBN: 9781544337722
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 17, Problem 11P
To determine
To explain:
Whether banks avoid holding
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Why do banks want to maintain as little excess reserves as possible? Under what circumstances might banks want to hold excess reserves?
Why might banks want to hold excess reserves in time of recession?
Why don’t banks hold 100 percent reserves? How is the amount of reserves banks hold related to the amount of money the banking system creates?
Chapter 17 Solutions
Exploring Macroeconomics
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