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The Fed's power to set the required reserves of commercial banks: a. prevents commercial banks from earning excess profits. b. prevents banks from hoarding too

The Fed's power to set the required reserves of commercial banks:

a. prevents commercial banks from earning excess profits.

b. prevents banks from hoarding too much vault cash.

c. provides a certain source of interest income for commercial banks.

d. allows the Fed to control the lending ability of commercial banks and, thereby, control the money supply.

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