If a Bank Expects Inflation to Increase in the near Future,how

question 108

Multiple Choice

If a bank expects inflation to increase in the near future,how will it respond?

• A) It will start paying less interest on deposits.
• B) It will seek to reduce the amount of cash held in its vaults.
• C) It will temporarily scale back its efforts to gain new customers.
• D) It will start charging more interest on loans.
• E) It will temporarily suspend withdrawals.

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