Why might banks want to hold excess reserves in time of recession?
A. Banks may want to hold excess reserves in time of recension to be able to help borrowers who fall behind on their car or house payment, thereby creating customer good will
B. Banks may want to hold excess reserves in time of recession to be able to take advantage of borrowers who fall behind on their car or house payment thereby making excess pro ac
C. In times of economic uncertainty banks may worty that borrowers will lose the ability to repay their loans They may also fear that a panic is more likely and they will need the excess reserves to meet their obligations
D. In times of economic uncertainty banks may know that borrowers will be more likely to repay the loans They may also know that a panic is ons likely and they will need the excess serves to meet their obligations
