Which of the following is not a reason that banks keep reserves? To settle transactions with other banks. To meet the Fed’s minimum reserve requirement. To keep the interest rate from becoming too low. To make sure their vault looks full.

Which of the following is not a reason that banks keep reserves? To settle transactions with other banks. To meet the Fed’s minimum reserve requirement. To keep the interest rate from becoming too low. To make sure their vault looks full.

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter13: Money And The Banking System

Section: Chapter Questions

Problem 5CQ

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112.)

Which of the following is not a reason that banks keep reserves?

		To settle transactions with other banks.
		To meet the Fed’s minimum reserve requirement.
		To keep the interest rate from becoming too low.
		To make sure their vault looks full.

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