If a bank does not have enough reserves to satisfy the reserve requirement,it is likely to do any of the following except

Question

Quizplus · Accepted Answer

If a bank does not have enough reserves to satisfy the reserve requirement, it will need to increase its reserves. Options A, B and C are all valid ways to increase reserves. Buying securities, on the other hand, would decrease the bank's reserves and thus would not be a logical choice in this scenario.

If a Bank Does Not Have Enough Reserves to Satisfy