If a bank's actual reserve ratio equals 5% and its desired reserve ratio is 2.5%, the bank should:

Name: If a bank's actual reserve ratio equals 5% and its desired reserve ratio is 2.5%, the bank should:
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When a bank's actual reserve ratio is higher than its desired reserve ratio, it means the bank is holding more reserves than it wants to. By making more loans, the bank can decrease its reserve ratio to the desired level, as it puts more of its reserves to work.

If a Bank's Actual Reserve Ratio Equals 5% and Its