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How Can Banks Increase the Amount of Loanable Funds Available

Question 14

Multiple Choice

How can banks increase the amount of loanable funds available for private lending?


A) By selling government securities to securities dealers and the Federal Reserve System
B) By buying government securities from securities dealers and the Federal Reserve System
C) By buying stocks, property and other assets to hold on behalf of the banks
D) By holding 100 percent of customers' deposits in bank vaults

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