Ask Question
BusinessBusiness
Today, 04:54

As commercial banks keep more excess reserves, what happens to money creation

+1
Answers (1)
  1. Today, 06:01
    0
    As commercial banks keep more excess reserves, money creation will be decreased.

    If the federal reserve does not control this excess, it will lower the value of the currency and will create inflation. Decreasing the money creation will limit the amount of money that could exist in the market hence preventing the devaluation of currency's value
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “As commercial banks keep more excess reserves, what happens to money creation ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Leisure is Select one: a. a good that is not counted in GDP. b. a good that is counted in GDP. c. neither a good nor a bad, and it is not counted in GDP. d. a bad as far as economists are concerned, because it is not tangible.
Answers (1)
What two explanations of productivity growth does endogenous growth theory offer? A. population growth and increased saving B. population growth and technological innovation C. increased saving and technological innovation D.
Answers (1)
Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate is 4.20%. You now receive another $5.00 million, which you invest in stocks with an average beta of 0.65.
Answers (1)
On July 15, 2016, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $750,000 and $325,000, respectively.
Answers (1)
State true or false for the following. 1. The Incident Command System (ICS) and NIMS are the same, and these terms can be used interchangeably. 2. ICS could be used to manage a large sporting event or a visit from a foreign dignitary. 3.
Answers (2)
New Questions in Business
For a recent year, microsoft corporation (msft) reported short-term unearned revenue of $23,223 million. for the same year, microsoft also reported total revenues of $93,580 million. a.
Answers (1)
Home Parties is paying an annual dividend of $1.78 every other year. The last dividend was paid last year. The firm will continue this policy until two more dividend payments have been paid.
Answers (1)
Here are three things you could do if you do not attend your neighbor's barbecue: watch television with some friends (you value this at $17), read a good novel (you value this at $14), or go in to work (you could earn $16 during the barbecue).
Answers (1)
The University of Michigan football stadium, built in 1927, is the largest college stadium in America, with a seating capacity of 108,000 fans.
Answers (1)
As commercial banks keep more excess reserves, what happens to money creation
Answers (1)
Home » Business » As commercial banks keep more excess reserves, what happens to money creation
Sign Up Forgot Password?