Question

when banks hold excess reserves because they dont see good lending opportunities:
it negatively affects contractionary monetary policy.
it negatively affects expansionary monetary policy.
expansionary monetary policy is unaffected.
contractionary monetary policy is unaffected
question 13
0 pts
extra credit:
if you were to survey central bankers from around the world and ask them what they believe the primary task of monetary policy should be, what would the most popular answer likely be?
leverage cycle
bank runs
fighting inflation
bank supervision

Explanation:

For the first question: Expansionary monetary policy aims to increase the money supply by encouraging banks to lend. When banks hold excess reserves instead of lending, the policy's goal of boosting money circulation is frustrated, weakening its impact.
For the second question: A core mandate for most central banks globally is maintaining price stability, which centers on fighting inflation, making this the most common primary task cited by central bankers.

Answer:

1. it negatively affects expansionary monetary policy.
2. fighting inflation