18-23 The penalty for undershooting the minimum reserve requirements may include explicit interest rate charges as well as implicit costs in the form of more frequent monitoring and examinations.

Question

Quizplus · Accepted Answer

Undershooting the minimum reserve requirements can result in penalties such as explicit interest rate charges and implicit costs, such as increased monitoring and examinations by regulatory authorities.

18-23 the Penalty for Undershooting the Minimum Reserve Requirements May