Multiple Choice
If a bank expects inflation to increase in the near future,how will it respond?
A) It will start paying less interest on deposits.
B) It will seek to reduce the amount of cash held in its vaults.
C) It will temporarily scale back its efforts to gain new customers.
D) It will start charging more interest on loans.
E) It will temporarily suspend withdrawals.
Correct Answer:
Verified
Correct Answer:
Verified
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