Given that the Fed currently imposes reserve requirements on checking deposits, but not on savings deposits, why

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Given that the Fed currently imposes reserve requirements on checking deposits, but not on savings deposits, why would banks prefer to hold deposits as savings accounts rather than checking accounts, other things equal?

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Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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Question Posted: Feb 07, 2013 05:54 AM

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Given that the Fed currently imposes reserve requirements on checking deposits, but not on savings deposits, why

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Since the Fed does not currently require reserves to be set aside e...View the full answer

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