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10. The primary purpose of the legal reserve requirement is to: * O prevent banks from hoarding too much vault cash. O prevent commercial banks from earning excess profits. O provide a dependable source of interest income for commercial banks. provide a means by which the monetary authorities can influence the lending ability of commercial banks.

10. The primary purpose of the legal reserve requirement is to: * O prevent banks from hoarding too much vault cash. O prevent commercial banks from earning excess profits. O provide a dependable source of interest income for commercial banks. provide a means by which the monetary authorities can influence the lending ability of commercial banks.

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter24: The Influence Of Monetary And Fiscal Policy On Aggregate Demand
Section: Chapter Questions
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Problem 2 10. The primary purpose of the legal reserve requirement is to: O prevent banks from hoarding too much vault cash. prevent commercial banks from earning excess profits. provide a dependable source of interest income for commercial banks. provide a means by which the monetary authorities can influence the lending ability of commercial banks. 11. An increase in the money supply is most likely to have which of the following short-run effects on real interest rates and real coutput? * Real Interest Rates Real Output
Transcribed Image Text:Problem 2 10. The primary purpose of the legal reserve requirement is to: O prevent banks from hoarding too much vault cash. prevent commercial banks from earning excess profits. provide a dependable source of interest income for commercial banks. provide a means by which the monetary authorities can influence the lending ability of commercial banks. 11. An increase in the money supply is most likely to have which of the following short-run effects on real interest rates and real coutput? * Real Interest Rates Real Output
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