After the Central Bank Decreases Reserves in the Banking System

Multiple Choice

After the central bank decreases reserves in the banking system through open-market sales,banks reduce deposits through multiple rounds of calling in loans and losing deposits until the

A) central bank requires them to stop.
B) reserve-deposit ratio reaches one-half.
C) actual reserve-deposit ratio is greater than the desired reserve-deposit ratio.
D) actual reserve-deposit ratio is equal to the desired reserve-deposit ratio.
E) actual reserve-deposit ratio is less than the desired reserve-deposit ratio.