In your initial post to this discussion, respond to one of the following prompts based on what you've learned in this module about banking.

only pick one

Option 1:Evaluate the following statement: "Since any bank can only lend out its excess reserves, an increase in the monetary base that provides banks with excess reserves leads to a dollar for dollar increase in the money supply through bank lending."

Option 2:Evaluate the following statement: "Banks must walk a tightrope between illiquidity and unprofitability because the prudent policies such as holding lots of reserves that maintain liquidity reduce profitability."

Option 3:In what way is it true that "banks make money by making money"?