Question:

Economic-Bank question-help plz thank you?

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A bank that had zero excess reserves yesterday will have positive excess reserves today if

it transfers funds from its reserve account at the Federal Reserve into vault cash.

it transfers all its vault cash into its reserve account at the Federal Reserve.

the required reserve ratio is lowered.

cash leakages rise.

none of the above

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2 ANSWERS


  1. c) the required reserve ratio is lowered.

    In this case reserves may be reduced thus if there wasn't any excess reserves then it emerges.


  2. none of the above!!!

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