When banks hold excess reserves because they don’t see good lending opportunities:
A. it negatively affects contractionary monetary policy.
B. it negatively affects expansionary monetary policy.
C. expansionary monetary policy is unaffected.
D. contractionary monetary policy is unaffected.
Answer:B
When banks hold excess reserves because they don’t see good lending opportunities:
A. it negatively affects contractionary monetary policy. B. it negatively affects expansionary monetary policy. C. expansionary monetary policy is unaffected. D. contractionary monetary policy is unaffected.
Explanation: Type: Multiple Choice