KEY QUESTION Why does the Federal Reserve require commercial banks to have reserves? Explain why reserves are

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KEY QUESTION Why does the Federal Reserve require commercial banks to have reserves? Explain why reserves are an asset to commercial banks but a liability to the Federal Reserve Banks. What are excess reserves? How do you calculate the amount of excess reserves held by a bank?

What is the significance of excess reserves?

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Macroeconomics

ISBN: 9781108458856

17th Edition

Authors: Campbell McConnell, Stanley Brue

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