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Financial Crises Essays

Answer the 4 Discussion Questions in Separate Paragraphs

Question 1 Banks must hold a certain percentage of their deposits as reserves, known as the reserve requirement. This requirement ensures that banks have enough money to cover customer withdrawals and prevents banks from being overly risky with their lending practices. Requiring banks to hold 100% of their deposits as reserves would be a very ... Read More
Pages: 3       Words: 719
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