Whenever desired reserves exceed actual reserves, the bank
A)can make new loans.
B)will call in loans.
C)will go out of business.
D)is in a profit-making position.
E)has excess reserves.

Name: Whenever desired reserves exceed actual reserves, the bank A)can make new loans. B)will call in loans. C)will go out of business. D)is in a profit-making position. E)has excess reserves.
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Question

Quizplus · Accepted Answer

When desired reserves exceed actual reserves, the bank may need to call in loans to meet reserve requirements.

Whenever Desired Reserves Exceed Actual Reserves, the Bank