A bank wants to get rid of 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
B
Economics
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Why does a bank sometimes hold excess reserves?
What will be an ideal response?
Economics
(1)(2)(3)(4)(5)QdQdPriceQsQs5040$1070806050960708060850609070740501008063040Refer to the above table. If demand is represented by columns (3) and (1) and supply is represented by columns (3) and (4), equilibrium price and quantity will be:
A. $7 and 30 units. B. $9 and 60 units. C. $10 and 60 units. D. $8 and 80 units.
Economics