When the actual reserves held by a bank exceed the legal requirement, the bank
A) will have to borrow from the Fed.
B) has excess reserves, which can be used to extend additional loans.
C) cannot extend additional loans.
D) will have to reduce its outstanding loans.
Correct Answer:
Verified
Q129: Table 13-2 Q130: Regional Bank is subject to a 10 Q131: Excess reserves of banks equal Q132: The immediate effect of a member bank's Q133: If the banking system has $50 billion Q135: The fraction that banks must, by law, Q136: Which of the following most clearly limits Q137: If the public decides to hold more Q138: Marquis decides to bank with First National Q139: When a banker accepts a deposit of
A) actual reserves
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