Prior to 2008, the bank's cost of holding reserves equaled
A. the interest paid on deposits times the amount of reserves.
B. the interest paid on deposits times the amount of deposits.
C. the interest earned on loans times the amount of loans.
D. the interest earned on loans times the amount on reserves.
Answer:D
Prior to 2008, the bank's cost of holding reserves equaled
A. the interest paid on deposits times the amount of reserves. B. the interest paid on deposits times the amount of deposits. C. the interest earned on loans times the amount of loans. D. the interest earned on loans times the amount on reserves.