In which of the following ways can a bank increase its reserves?
A)Give out more loans
B)Sell securities
C)Reduce interest rate on time deposits
D)Increase service charges for safety vault facility

Question

Quizplus · Accepted Answer

Selling securities would bring in more cash, which can then be held as reserves. Giving out more loans would decrease reserves, reducing interest rate on time deposits may lead to withdrawal of funds, and increasing service charges for safety vault facility would not directly contribute to increasing reserves.

In Which of the Following Ways Can a Bank Increase