If the actual reserve/deposit ratio equals 8% and the desired reserve/deposit ratio for this bank is 10%, the bank should:
A) do nothing because this is a profitable situation.
B) stop making loans.
C) send the extra reserves to the central bank.
D) make more loans in order to earn interest.
Correct Answer:
Verified
Q21: Commercial banks create new money:
A)when they increase
Q30: Bank reserves are:
A)currency and customer checking deposits.
B)currency,
Q33: Assets of the commercial banking system include:
A)reserves
Q43: If bank reserves are 200, the public
Q44: If the public switches from using cash
Q45: When an individual deposits currency into a
Q45: When the actual reserve/deposit ratio is less
Q46: If the actual reserve/deposit ratio equals 15%
Q48: If the Central Bank of Macroland puts
Q50: In Macroland there is $10,000,000 in currency.The
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents