Answer:
C. Desired reserve ratio; unplanned reserves
Explanation:
The ratio of reserves to deposits is usually a bank's desired reserve ratio. This is the amount the banks hold where as all the money over the reserves is usually lent or invested.
If a bank has more money than the desired reserves, these are called excess reserves or unplanned reserves. The banks have the option to invest them or use them to create credit and increase money supply.
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