If Banks Never Held Any Excess Reserves and If the Currency

question 68

Essay

If banks never held any excess reserves and if the currency holdings of the public never changed, do you think the Fed would still focus on an interest-rate target?

---

Definitions:

Anxiety Level

The degree of unease, worry, or fear a person is experiencing, which can affect their mental and physical health.

General Anesthesia

A medically induced coma with loss of protective reflexes, resulting from the administration of one or more general anesthetic agents.

Regional Anesthesia

A type of anesthesia that numbs a specific area of the body, blocking pain in that region without inducing general unconsciousness.

Peripheral Nerve

Nerves located outside of the brain and spinal cord that relay information between the central nervous system and the rest of the body.