If a Bank Has Zero Excess Reserves and One of Its

Multiple Choice

If a bank has zero excess reserves and one of its creditworthy customers applies for a loan,the bank may be able to grant the loan if it can

A) apply some of its loan repayments to obtain the funds for the new loan.
B) obtain extra funds in the federal funds market.
C) obtain extra funds by borrowing from the Fed.
D) any of the above
E) b or c