One Reason Why Banks Are Required to Deposit a Minimum

question 93

Multiple Choice

One reason why banks are required to deposit a minimum amount of reserves at the Federal Reserve is so that

• A) banks will have more liquidity.
• B) banks will be able to make more loans.
• C) depositors will feel their deposits are protected.
• D) the Federal Reserve can own a portion of all banks they regulate.
• E) the Federal Reserve can control the ability of banks to lend money to others.

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