If Reserves Do Not Earn Any Interest for the Bank

question 74

Essay

If reserves do not earn any interest for the bank, why would a bank hold any excess reserves?

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Definitions:

Planning

The process of defining goals, establishing strategies to achieve those goals, and developing plans to integrate and coordinate activities.

Management Process

Planning, organizing, leading, and controlling the use of resources to accomplish performance goals.

Planning

The process of setting objectives, determining strategies, and outlining tasks and schedules to achieve the goals.

Managerial Efforts

The actions or initiatives taken by managers to achieve organizational goals.