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Which of the following happens when you deposit money?
Bank invests some of it and lends some of it
Bank keeps all of it untouched
Bank lends some of it
Bank invests some of it
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GPT-5 mini
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Bank invests some of it and lends some of it.
Explanation: Banks must hold some deposits as reserves (required + any excess) but use the rest to make loans and buy securities (i.e., invest). They do not keep all deposits untouched.
Explanation: Banks must hold some deposits as reserves (required + any excess) but use the rest to make loans and buy securities (i.e., invest). They do not keep all deposits untouched.
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