U.S. Reserve Requirements

question 7

Multiple Choice

U.S. reserve requirements

• A) are rejected by half the banks operating in the United States.
• B) show how regulatory asymmetries can operate to enhance the profitability of Eurocurrency trading.
• C) tend to harm the bank's business and decrease monetary aggregates.
• D) force banks to hold a portion of its assets in a liquid form easily mobilized to meet sudden deposit outflows.
• E) remain in place, but capital requirements have begun defaulting.

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