A bank manager who wants to increase profitability would likely
A) hold more of the bank's assets in required reserves
B) hold more of the bank's assets in excess reserves
C) reduce the liquidity of a bank's assets
D) meet all depositors' requests for funds with little trouble
E) hold more of the bank's assets in deposits at the Federal Reserve System
Correct Answer:
Verified
Q108: By holding highly liquid assets to guard
Q109: A bank can increase the money supply
Q110: To maximize its profit,a bank will
A)minimize actual
Q111: The liquidity of an asset indicates
A)its buying
Q112: Liquidity contributes to the bank's achievement of
Q114: When a member bank sells U.S.government securities
Q115: In the federal funds market,
A)banks make loans
Q116: Banks borrow excess reserves from each other
Q117: In order to meet a deficiency of
Q118: Liquidity refers to the ease with which
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