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If depositors withdraw their funds and create a shortage of

If depositors withdraw their funds and create a shortage of reserves, bankers. true or false

The greater the level of excess reserves, the lower the Federal Funds rate will be.

A. have no alternative but to call in outstanding loans

B. can borrow reserves from the Fed

C. must close their operations until their reserves increase

D. must sell bank stock to replenish reserves

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Microeconomics: If depositors withdraw their funds and create a shortage of

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