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What is a possible downside for a bank to have too much liquidity in the form of reserves?
Group of answer choices
The bank would encounter a problem if many customers came to withdraw their funds.
Reserves are assets that generate very little income as opposed to securities or loans.
A bank holding too many excess reserves may be sanctioned by the central bank.
A bank account pays 19.2% interest with monthly compounding. A series of deposits started with a deposit of $5000 on January 1, 2007
Laws that protect competition have recently been
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