If reserve requirements were eliminated in the future, as some economists advocate, whateffects would this have on the size of money market mutual funds?
Question
Solution 1
Eliminating reserve requirements would have several potential effects on the size of money market mutual funds.
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Increased Bank Lending: Without reserve requirements, banks would have more funds available to lend. This could potentially lead to an increase in bank lending.
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Decreased Demand fo Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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