Why has the development of overnight loan markets made it more likely that banks will hold fewer

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Why has the development of overnight loan markets made it more likely that banks will hold fewer excess reserves?

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Economics of Money, Banking and Financial Markets

ISBN: 978-0321598905

9th Edition

Authors: Frederic S. Mishkin

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Question Posted: Aug 12, 2012 04:20 AM

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Why has the development of overnight loan markets made it more likely that banks will hold fewer

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Because when a deposit outflow occurs a bank is able to borrow rese...View the full answer

Economics of Money, Banking and Financial Markets

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