Money and banking question...?
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Why has the development of overnight loan markets made it mroe likely that banks will hold fewer excess reserves ?
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Answer:
Bank want to use their own funds instead of borrowing funds, that way they can make more profit
HLZ3A73CNNPH74KTI53HBMAMGI at Yahoo! Answers Visit the source
Other answers
no idea but just intuitively because banks can make more money by loaning out their extra cash overnight instead of just having it sit there?
misha81s
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