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Suppose the Bank Manager Wants to Increase the Bank's Profitability

Question 37

Multiple Choice

Suppose the bank manager wants to increase the bank's profitability.Which of the following strategies is the bank manager likely to use?  


A)  hold more of the bank's assets in required reserves 
B)  hold more of the bank's assets in excess reserves 
C)  reduce the liquidity of a bank's assets 
D)  meet all depositors' requests for funds with little trouble

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