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

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Selling securities is the most viable option for a bank to raise funds when it needs to meet its reserve requirements. This is because selling securities provides a quick and relatively easy way for the bank to raise funds without affecting its deposit base or loan portfolio. Additionally, selling securities helps to maintain the bank's liquidity and ensures that it remains in compliance with regulatory requirements. The other options may not be feasible as reducing deposits or repaying discount loans could impact the bank's balance sheet, while increasing loans could increase the risk of asset quality deterioration.

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