Discuss how do banks current holdings of excess reserves


1. Explain what excess reserves are and why would banks keeping them? Discuss how do banks current holdings of excess reserves compare to what they have historically held? Why?

2. Determine the three key ratios that impact the money multiplier and discuss who controls each? How does a change in each affect the size of the money supply given a constant monetary base?

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Macroeconomics: Discuss how do banks current holdings of excess reserves
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