Question:

The First National City Bank is currently not meeting the required reserve ratio.?

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Which of the following actions would NOT help the bank increase its reserves?

A. Sell securities

B. Borrow reserves from a Federal Reserve bank

C. Borrow reserves in the federal funds market

D. Make additional loans

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1 ANSWERS


  1. d) they would need additional reserves to make additional loans. making additional loans would only make the problem worse

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