When Can a Bank Make Loans

question 71

Multiple Choice

When can a bank make loans?

• A) when the bank has the minimum amount of required reserves
• B) only when a bank is confident that it can meet all the cash needs of depositors
• C) only when a bank has deposited all cash at the Federal Reserve
• D) when the bank has reserves greater than the amount of required reserves
• E) There is not enough information to solve this problem.

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