As of Sunday, March 15 the Fed reduced the required reserve ratio for banks to zero....
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As of Sunday, March 15 the Fed reduced the required reserve ratio for banks to zero. If banks earn no interest on reserves, why would they continue to hold any? Please choose all that apply. Banks need reserves in order to cover withdrawals. Every bank loan must be matched by an equal amount of reserves. Banks do not see enough good opportunities to make loans at positive interest rates. Holding reserves is good protection against inflation. Question 2 (0.4 points) FRED As of Sunday, March 15 the Fed reduced the required reserve ratio for banks to zero. If banks earn no interest on reserves, why would they continue to hold any? Please choose all that apply. Banks need reserves in order to cover withdrawals. Every bank loan must be matched by an equal amount of reserves. Banks do not see enough good opportunities to make loans at positive interest rates. Holding reserves is good protection against inflation. Question 2 (0.4 points) FRED
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