In today\'s \"fractional reserve\" banking system in the United States, the rese

Question

In today's "fractional reserve" banking system in the United States, the reserve requirements imposed on commercial banks are:
symbolic, because actual reserves greatly exceed the requirements. averages of the amounts need to meet the public's demand for money. intended to set a limit on the total money supply rather than to serve as a protection against bank runs. in excess of what is normally needed, in case people become uneasy about the safety of their bank deposits. In today's "fractional reserve" banking system in the United States, the reserve requirements imposed on commercial banks are:
symbolic, because actual reserves greatly exceed the requirements. averages of the amounts need to meet the public's demand for money. intended to set a limit on the total money supply rather than to serve as a protection against bank runs. in excess of what is normally needed, in case people become uneasy about the safety of their bank deposits. symbolic, because actual reserves greatly exceed the requirements. averages of the amounts need to meet the public's demand for money. intended to set a limit on the total money supply rather than to serve as a protection against bank runs. in excess of what is normally needed, in case people become uneasy about the safety of their bank deposits. symbolic, because actual reserves greatly exceed the requirements.

Explanation / Answer

Answer: intended to set a limit on the total money supply rather than to serve as a protection against bank runs.

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