Multiple Choice
If the actual reserve-deposit ratio equals 15% for a bank,but the desired reserve-deposit ratio for this bank is 10%,the bank should
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.
Correct Answer:
Verified
Correct Answer:
Verified
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