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When the Actual Reserve-Deposit Ratio Exceeds the Desired Reserve-Deposit Ratio,banks

Question 4

Multiple Choice

When the actual reserve-deposit ratio exceeds the desired reserve-deposit ratio,banks will


A) do nothing because this is a profitable situation.
B) stop making loans.
C) send the extra reserves to the central bank.
D) request that customers withdraw deposits from the bank.
E) make more loans in order to earn interest.

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