When There Is a Reserve Requirement,banks

question 27

Multiple Choice

When there is a reserve requirement,banks

• A)must hold exactly the required quantity of reserves.
• B)may hold more than,but not less than,the required quantity of reserves.
• C)may hold less than,but not more than,the required quantity of reserves.
• D)must seek the Fed's permission whenever they wish to expand or contract their loans to customers.