At a recent conference, Joe DiSanto and Michael Depasquale were discussing a recent Federal Reserve policy shift that led to an increase in banks’ excess reserves. They each offered an explanation as to why this would cause an increase in bank loans and investments: DiSanto: "Banks are required by law to expand the number of loans they originate when the Fed creates excess reserves. " Depasquale: "It is risky to hold excess reserves, whereas loans and investments are less risky. " Are DiSanto and Depasquale’s statements correctDiSanto Depasquale（）①A. Incorrect Incorrect ②B. CorrectIncorrect ③C. Incorrect Correct
A. ①
B. ②
C. ③
