when banks hold excess reserves

Why do individuals and businesses hold onto cash instead of depositing it?1st attempt part 1 (1 point) assume that banks hold no excess reserves and that all currency is deposited into the banking system.Excess reserves plus required reserves equal total reserves.Banks may hold reserves in excess of the required level;17) a bank will want to hold more excess reserves (everything else equal) when _____.

When the fed started paying interest on excess reserves in 2008, all of sudden banks started retaining large quantities of excess reserves.Why do banks hold excess reserves?Excess reserves are a safety buffer of sorts.If the interest rate is significantly low, they might hold onto their deposits out of convenience.The money supply in the economy decreases

30 percent, the banking system then has:Any balances held above this threshold are considered excess reserves.Excess reserves refer to the surplus of cash a bank holds in its vault or fed account beyond what is required by the federal reserve to be on hand.Excess reserves refer to the cash held by a bank or other financial institution above the reserve requirement that an authority sets.Pacific bank policy prevents it from holding excess reserves.

Bank reserves are the currency deposits that are not lent out to a bank's clients.Deposits that a bank keeps as cash in its vault or on deposit with the federal reserve.They are usually divided under two heads:They can only use them to make.