Assume the required reserve ratio is 5%, and a bank's excess reserves are $50 million.

Which of the following accurately explain why check-able deposits resulting from new loans based on excess reserves are not likely to generate the maximum of$50million20=$1,000million

$50million20=$1,000million?Check all that apply.

1. Some people want to use credit cards to make all of their purchases and keep their cash in the bank.
2. Some depositors want to hold a portion of their money in cash.
3. Some banks want to hold some excess reserves instead of making loans.
4. Some banks want to make more loans than their reserves will allow.