A bank wants to get rid of its excess reserves by making loans because a. It will

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A bank wants to get rid of its excess reserves by making loans because

a. It will be penalized if it does not get rid of the reserves.

b. The reserves do not earn interest.

c. It is afraid it will lose the excess reserves.

d. Firms will not borrow from a bank with excess reserves.

e. The bank has too many liabilities.

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Introduction To Economics Social Issues And Economic Thinking

ISBN: 9780470574782

1st Edition

Authors: Wendy A. Stock

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Question Posted: Oct 28, 2023 07:02 AM

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A bank wants to get rid of its excess reserves by making loans because a. It will

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b The reserves do not earn interest Banks hold reserves as a requirement imposed by the centr...View the full answer

Introduction To Economics Social Issues And Economic Thinking

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