Question
Asked Apr 11, 2019
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Banks don't lend out all of the funds deposited because:

 

 

A)

they need to make more money on interest-bearing deposits.

 

B)

they need to reduce their liquidity position.

 

C)

it would not be profitable.

 

D)

they have to satisfy any depositor who wants to withdraw funds.

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Expert Answer

Step 1

Bank is financial institution that controlled and monitor by the central bank of the respective countries. Banks receives deposits from the public. The bank would be successful when it can give back the money to the depositor when they need it. If banks fails to ...

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