In order for a bank to earn as much profit as possible, its excess reserves should be:

a. equal to its required reserves.
b. as small as possible.
c. less than its vault cash.
d. growing at a constant rate.

b

Economics

You might also like to view...

What are the functions of money?

What will be an ideal response?

Economics

Using this consumption function, autonomous consumption is

A) $0. B) between $1 and $2 trillion. C) more than $2 trillion and less that $5 trillion. D) more than $5 trillion and less than $8 trillion. E) more than $8 trillion.

Economics