Business, 08.04.2020 04:32 20009

People hold $400 million of bank deposits but no currency. Banks have made $380 million dollars of loans and only hold enough reserves to satisfy reserve requirements. Because of uncertainty, banks choose to hold $10 million more in reserves. The Fed takes no action. What happens to bank loans

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People hold $400 million of bank deposits but no currency. Banks have made $380 million dollars of l...