A regional bank is facing a sudden increase in withdrawal requests from customers due to economic uncertainty. The bank currently has $500,000 in checkable deposits and must maintain a reserve ratio of 10%. Given its current reserves are only $40,000, what is the most effective action the bank should take to ensure it meets its reserve requirement without significantly impacting its liquidity?

The bank needs to maintain a reserve ratio of 10% on its checkable deposits, which means it should have $50,000 in reserves for its $500,000 in deposits. Since the bank currently has only $40,000 in reserves, it is short by $10,000. To meet this requirement without affecting its liquidity too much, the bank could consider borrowing the needed funds from another bank or the central bank. This would allow the bank to quickly acquire the necessary reserves while still being able to serve its customers' withdrawal requests. For example, if the bank borrows $10,000, it would then have $50,000 in reserves, meeting the reserve requirement and keeping its operations stable.