Multiple Choice
Banks earn a profit by
A) keeping as many reserves on hand as possible.
B) making loans at a lower interest rate than the rate that they offer on their deposits.
C) charging an interest rate on their depositors' accounts.
D) making loans at a higher interest rate than the rates that they offer on their deposits.
E) not paying interest on their reserves.
Correct Answer:
Verified
Correct Answer:
Verified
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