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Yakvenalex [24]
3 years ago
13

The primary purpose of the legal reserve requirement is toa. Prevent banks from hoarding too much vault cash.b. Provide a means

by which the monetary authorities can influence the lending ability of commercial banks.c. Prevent commercial banks from earning excess profits.d. Provide a dependable source of interest income for commercial banks.
Business
1 answer:
oee [108]3 years ago
7 0

Answer: The correct answer is choice b.

Explanation: The primary purpose of the legal reserve requirement is to provide a means by which the monetary authorities can influence the lending ability of commercial banks. Basically, it is the Federal Reserve’s way of controlling the money supply.

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