One Reason Why Banks Are Required to Deposit a Minimum

Multiple Choice

One reason why banks are required to deposit a minimum amount of reserves at the Federal Reserve is so that

A) banks will have more liquidity.
B) banks will be able to make more loans.
C) depositors will feel their deposits are protected.
D) the Federal Reserve can own a portion of all banks they regulate.
E) the Federal Reserve can control the ability of banks to lend money to others.