As the costs associated with deposit outflows ________, the banks willingness to hold excess reserves will ________.

As the costs associated with deposit outflows ________, the banks willingness to hold excess reserves will ________.

As the costs associated with deposit outflows ________, the banks willingness to hold excess reserves will ________.




A) decrease; increase
B) increase; decrease
C) increase; increase
D) decrease; not be affected



Answer: C