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.
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.
Chapter24: Money And The Federal Reserve System
Section: Chapter Questions
Problem 16SQ
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Question
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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