When the Actual Reserve-Deposit Ratio Exceeds the Desired Reserve-Deposit Ratio,banks

question 4

Multiple Choice

When the actual reserve-deposit ratio exceeds the desired reserve-deposit ratio,banks will

• A) do nothing because this is a profitable situation.
• B) stop making loans.
• C) send the extra reserves to the central bank.
• D) request that customers withdraw deposits from the bank.
• E) make more loans in order to earn interest.

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