If no decent lending opportunity arises in the economy, and the central bank pays an interest rate
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If no decent lending opportunity arises in the economy, and the central bank pays an interest rate on reserves that is similar to other low-risk investments, do you think banks will be willing to hold large amounts of excess reserves?
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Banks should be willing to hold large amounts of excess reserves This is exactly w...View the full answer
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Related Book For 
Economics of Money Banking and Financial Markets
ISBN: 978-0134733821
12th edition
Authors: Frederic S. Mishkin
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