History, 29.08.2019 07:20, iBrain

Which of the following most accurately describes what banks do with their
excess reserves?
o
a. banks keep excess reserves on hand to meet customer's
demands for withdrawals during a bank run.
b. banks invest excess reserves in the currency exchange market in
order to stabilize their nation's currency.
banks use excess reserves to make loans to customers so that
they can make profits on the interest.
d. banks spend excess reserves on expenses such as rent and
salaries that are related to operating the bank.

Answers: 2

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Do you know the correct answer?

Which of the following most accurately describes what banks do with their
excess reserves?