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When banks hold only the minimum reserves required, or barely more, the situation is called:
ALimited reserves
BForeign reserves
CExcess reserves
DFrozen reserves
Answer & Solution
Correct answer: A. Limited reserves
1. The requirement is only just met.
2. Little spare is kept.
3. They are limited reserves.
_Source: OpenStax Principles of Economics 3e, Chapter 27, Money and Banking._
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