Because a bank earns money when it makes a loan to a borrower it:
A) has an incentive to loan out as much of each deposit as it can.
B) has an incentive to borrow from the government as much as it can to loan out.
C) needs to loan out more than it takes in through deposits to make money.
D) has more of an incentive to loan out money than take money in through deposits.
Correct Answer:
Verified
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