If the Actual Reserve-Deposit Ratio Equals 15% for a Bank,but

question 53

Multiple Choice

If the actual reserve-deposit ratio equals 15% for a bank,but the desired reserve-deposit ratio for this bank is 10%,the bank should

• 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.

---

Definitions:

Decentralised Organisation

An organizational structure in which decision-making authority is distributed among various levels and departments, promoting agility and faster decision-making.

Autonomous Managers

Autonomous managers are individuals who have the independence and authority to make decisions and manage operations without constant oversight from higher management levels.

Revenue Centre Manager

An individual responsible for generating income and managing the revenue-related activities within a specific area of an organization.

Investment Centre Manager

An individual responsible for managing a business segment that is evaluated based on its return on investment or profitability, having authority over costs, revenues, and investments.