Answered

Connect with a global community of experts on IDNLearn.com. Our experts provide timely and accurate responses to help you navigate any topic or issue with confidence.

Banks are legally required to hold on to excess reserves.

A. True
B. False

Sagot :

GinnyAnsweridn

Final answer:

Banks are legally required to hold excess reserves, especially during challenging economic times.


Explanation:

True. Banks are required to hold a minimum level of reserves, but they can also choose to hold excess reserves above the mandated limit. This can be beneficial during economic downturns when banks may be cautious about lending.


Learn more about Bank Reserves here:

https://brainly.com/question/30002356


We are happy to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. Your questions find answers at IDNLearn.com. Thanks for visiting, and come back for more accurate and reliable solutions.