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economics money and banking which of these answers can meet its reserve requirem

ID: 2792783 • Letter: E

Question

economics money and banking which of these answers can meet its reserve requirements and why please and thank you.it can have more than one answer and if it does why does each of those answers work

22) If, after a d eposit outflow, a bank has a reserve deficiency of $ 3 million, it can meet its reserve requirements by: (maybe more than one answer) decreasing loans by $3 million. III. selling $3 million of securities. V. repay 53 million of its discount loans from the Fed. I. 1, reducin g deposits by $3 million. . 8 its capital by $3 million. IV, reducin

Explanation / Answer

Ans III. Selling $3 million of securities.

It will help the bank to increase its reserves by $3 million and thus maintaining its reserve requirement.