contestada

The cost of holding excess reserves is the interest rate that could have been earned minus the interest rate that is paid on these reserves. If the interest rate is 5% and the interest rate paid on reserves is 2%, the cost of holding on excess reserves is

Respuesta :

Answer:

7% because you would have to add 5% with 2%

Explanation:

because you would have to add 5% with 2% and get 7 %