Why does a bank sometimes hold excess reserves?

a) to keep from lending too much money

b) to be sure it can meet its customers' demands

c) to make check clearing easier

d) to protect against high prices

Question

Armani Gaines

28 August, 12:29

+1

Answers (1)

Know the Answer?

Jaylene Fletcher · Answer 1

The answer is d: to protect against high prices

Why does a bank sometimes hold excess reserves?a) to keep from lending too much moneyb) to be sure it can meet its customers' demandsc) to make check clearing easierd) to protect against high prices