If,after a Deposit Outflow,a Bank Needs an Additional $3 Million

question 102

Multiple Choice

If,after a deposit outflow,a bank needs an additional $3 million to meet its reserve requirements,the bank can

• A) reduce deposits by $3 million.
• B) increase loans by $3 million.
• C) sell $3 million of securities.
• D) repay its discount loans from the Fed.

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