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Question: The reserve requirement sets the required percent of vault cash plus deposits with the regional Federal Reserve Banks that banks must keep for their deposits. Many banks have widespread branches and automatic teller machines (ATMs). Would the existence of branches and ATMs affect the level of excess reserves (above those required) that banks hold? Why or why not? What would be the effect on the actual money multiplier?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92292112

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