Banks Are Required to Keep a Minimum Amount of Funds

question 60

Multiple Choice

Banks are required to keep a minimum amount of funds in reserve because

• A)Depositors may decide to withdraw funds at any time.
• B)The Fed may decide to withdraw funds at any time.
• C)The bank may decide to increase aggregate demand at any time.
• D)Borrowers may decide to repay loans ahead of schedule.

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