If, after a deposit outflow, a bank needs an additional $3 million to

If, after a deposit outflow, a bank needs an additional $3 million to meet its reserve requirements, the bank can

A) reduce deposits by $3 million.
B) increase loans by $3 million.
C) sell $3 million of securities.
D) repay its discount loans from the Fed.

 

ANSWER

C

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