Why can banks continue to hold reserves


Problem

1. Would it be a good thing if everyone had twice the amount of their current clothes, housing, and food supplies? Would it be a good thing if everyone had twice as much money? How does money differ from other goods?

2. Why can banks continue to hold reserves that are only a fraction of the demand deposits of their customers? Is your money safe in a bank? Why or why not?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Business Management: Why can banks continue to hold reserves
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