The excess reserves ratio is ________ related to expected deposit outflows, and is ________ related to the market interest rate.
A) negatively; negatively
B) negatively; positively
C) positively; negatively
D) positively; positively
Answer: C
The excess reserves ratio is ________ related to expected deposit outflows, and is ________ related to the market interest rate.
A) negatively; negatively
B) negatively; positively
C) positively; negatively
D) positively; positively
Answer: C