All commercial banks within a country hold a proportion of their total deposits with the central bank
Question:
All commercial banks within a country hold a proportion of their total deposits with the central bank (for example, the Federal Reserve in the United States). Why do commercial banks hold such reserves even though they usually earn a low interest rate?
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Commercial banks hold reserves with the central bank for several important reasons despite earning a low interest rate on these reserves 1 Liquidity R...View the full answer
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Related Book For 
Financial Markets And Institutions
ISBN: 9781292215006
9th Global Edition
Authors: Stanley Eakins Frederic Mishkin
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