Bella, a depositor with Curio Bank, wishes to withdraw her funds. The bank ________.

Question

Quizplus · Accepted Answer

When Bella withdraws her funds, the bank must replace those funds with either other deposits or by reducing their loans. This is to ensure that the bank maintains its reserve requirements set by regulatory authorities. Therefore, option D is the correct answer. Option A is incorrect because if the bank fails to pay Bella, it would be a breach of contract and would damage the bank's reputation. Option B is incorrect because it is not ethical or legal for a bank to force a customer to take out a loan. Option C is incorrect because the bank is required to pay Bella the full amount of her deposit.

Bella, a Depositor with Curio Bank, Wishes to Withdraw Her