Which of the following most accurately describes what banks do with their
excess reserves?
OA. Banks spend excess reserves on expenses such as rent and
salaries that are related to operating the bank.
B. Banks invest excess reserves in the currency exchange market in
order to stabilize their nation's currency.
C. Banks keep minimal reserves on hand to meet customer's
demands for withdrawals during a bank run.
OD. Banks use excess reserves to make loans to customers so that
they can make profits on the interest.