When required reserves exceed actual reserves, commercial banks will be forced to have borrowers

Question

Quizplus · Accepted Answer

When required reserves exceed actual reserves, commercial banks may need to increase their reserves to meet regulatory requirements. One way to do this is by having borrowers repay loans, which increases the bank's reserves by converting loans (assets) back into deposits (liabilities that count towards reserves).

When Required Reserves Exceed Actual Reserves, Commercial Banks Will Be