What is the effect on the deposit expansion process if banks choose to hold more excess reserves?

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What is the effect on the deposit expansion process if banks choose to hold more excess reserves? Why might they do so?

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Principles of Money Banking and Financial Markets

ISBN: 978-0321339195

12th edition

Authors: Lawrence S. Ritter, William L. Silber, Gregory F. Udell

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Question Posted: Mar 06, 2018 09:28 AM

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What is the effect on the deposit expansion process if banks choose to hold more excess reserves?

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Expansion is weakened for example when banks increase their cus...View the full answer

Principles of Money Banking and Financial Markets

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