Raise reserves have on the banking and monetary system

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Reference no: EM131083713

You are the president of a commercial bank that is also a member of the Federal Reserve System, and you want to increase your bank’s reserves. But you currently have negative excess reserves, in which case your bank is borrowing from the Fed and the Fed may be putting pressure on you to remove that debt.

How would you raise your bank’s reserves?

What effects would your attempt to raise reserves have on the banking and monetary system?

Reference no: EM131083713

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