If this same bank has its legal reserve requirement raised to 18 percent,it
A) need not do anything since it still has sufficient legal reserves to meet this new requirement.
B) must take steps to increase its demand deposits by making new loans from its reserves.
C) should discourage new demand deposit accounts until its legal reserves are increased.
D) must either sell securities or not renew loans as they come due.
E) should buy government securities to increase the money supply.
Correct Answer:
Verified
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