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    Modern Principles of Economics
  4. Exam
    Exam 15: The Federal Reserve System and Open Market Operations
  5. Question
    Holding Reserves Is Costly for Banks Because
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Holding Reserves Is Costly for Banks Because

Question 236

Question 236

Multiple Choice

Holding reserves is costly for banks because:


A) it forces banks to pay for ATMs.
B) it leads to the risk of bank robberies.
C) it leads to fewer profits.
D) the Fed charges banks interest on required reserves.

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