Without a central bank, such as the Federal Reserve System, banks, if left to themselves, are likely to

a. hold greater excess reserves than socially desirable during a recession
b. create insufficient money when the economy is at full employment
c. engage in money creation opportunities when the economy is in a recession
d. hold no reserves when the economy is in a recession
e. lend the least possible amount when the economy is at full employment


A

Economics

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