question archive The main purpose of reserve requirements is to (a) enable the Fed to control the amount of demand deposits (b) ensure that banks have a safe margin of cash assets available for daily use (c) prevent banks "runs" by building public confidence in US banking (d) enable the Fed to buy government securities with the reserves that banks have to keep at the Fed

The main purpose of reserve requirements is to (a) enable the Fed to control the amount of demand deposits (b) ensure that banks have a safe margin of cash assets available for daily use (c) prevent banks "runs" by building public confidence in US banking (d) enable the Fed to buy government securities with the reserves that banks have to keep at the Fed

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The main purpose of reserve requirements is to

(a) enable the Fed to control the amount of demand deposits

(b) ensure that banks have a safe margin of cash assets available for daily use

(c) prevent banks "runs" by building public confidence in US banking

(d) enable the Fed to buy government securities with the reserves that banks have to keep at the Fed

Option 1

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