Question

19) How does having no money in reserves put people in a risky position?

Answer 1

Answer: If someone was to make a big withdrawal , the economy would be low on money

Step-by-step explanation:

Reserve requirements are the amount of funds that a bank holds in reserve to ensure that it is able to meet liabilities in case of sudden withdrawals. Reserve requirements are a tool used by the Federal Reserve to increase or decrease money supply in the economy and influence interest rates.

Answer 2

People and businesses that lack sufficient cash reserves can resort to credit or in extreme cases may be forced into bankruptcy