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MA
Question Practice

What might happen if banks did not maintain enough reserves as required?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Economics
Introductory Macroeconomics
Money And Banking
Question Bank

What might happen if banks did...

Single Answer MCQ
Q-00089060

What might happen if banks did not maintain enough reserves as required?

1

Increased trust among depositors

2

Potential bank insolvency or failure

3

Higher government subsidies for banks

4

Decreased loan availability

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