Excess reserves make a bank less vulnerable to runs. Why, then, dont bankers like to hold excess

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Excess reserves make a bank less vulnerable to runs. Why, then, don’t bankers like to hold excess reserves? What circumstances might persuade them that it would be advisable to hold excess reserves?

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Macroeconomics Principles And Policy

ISBN: 9780324586213

11th Edition

Authors: William J. Baumol, Alan S. Blinder

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Question Posted: Sep 01, 2012 02:47 AM

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Excess reserves make a bank less vulnerable to runs. Why, then, dont bankers like to hold excess

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Banks are safer when they hold excess reserves but they have to balance this a...View the full answer

Macroeconomics Principles And Policy

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