bank behavior

When The Federal Reserve Increases The Reserve Ratio The Impact Will Be To?

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When The Federal Reserve Increases The Reserve Ratio The Impact Will Be To? Increasing the (reserve requirement) ratios reduces the volume of deposits that can be supported by a given level of reserves and, in the absence of other actions, reduces the money stock and raises the cost of credit. What happens when the Fed

When A Bank Has No Excess Reserves Remaining?

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When A Bank Has No Excess Reserves Remaining? Because banks earn relatively little interest on their reserves held on deposit with the Federal Reserve, we shall assume that they seek to hold no excess reserves. When a bank’s excess reserves equal zero, it is loaned up. What is the reserve requirement if banks have zero