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When a bank receives deposits,

A) it and it alone decides how much it will hold as reserves.

B) its assets increase in amount but its liabilities do not change.

C) it must hold the entire amount as reserves in case of withdrawal.

D) the Fed requires it to hold only a small percentage as reserves.

E) its liabilities increase in amount but its assets do not change.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91867043

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