ruben0411 ruben0411
  • 15-09-2020
  • Business
contestada

why must banks keep money on reserve?

Respuesta :

eexoie
eexoie eexoie
  • 15-09-2020

Answer:

Bank reserves are the cash minimums that must be kept on hand by financial institutions in order to meet central bank requirements. The bank cannot lend the money but must keep it in the vault, on-site or at the central bank, in order to meet any large and unexpected demand for withdrawals.

Explanation:

Answer Link

Otras preguntas

Which Energy pathway can a person without the ability to see color work in?
You were assigned to read 5⁄8 of your book. how many sixteenths is that? fraction
A cross between a tetraploid and a diploid member of the same species will produce offspring that can undergo sexual reproduction. hints a cross between a tetra
How do I solve 24 - (7+5) /. 6+8
Find an equation of the normal line to the parabola y = x2 â 9x + 7 that is parallel to the line x â 7y = 2.
Which of the following expressions would not be used to indicate a lack of comprenhension? a. Más despacio, por favor. c. Repita, por favor. b. Otra vez, por fa
A 1 kg ball is thrown into the air with an initial velocity of 30 m/s . how high did the ball travel?
If someone did not regard health care as very important, often using home remedies and other substitutes, his or her demand curve for health care would most lik
How to know whether to use sin or cos in physics?
High levels of muscular fitness can also lead to reduced risk for chronic diseases. is it true or false