Arrange the following steps in the correct order for a bank to effectively manage its reserves when facing a shortfall: A) Evaluate the current reserve ratio, B) Call in loans or seek alternative funding, C) Assess the impact on liquidity and compliance, D) Adjust reserve levels to meet requirements.

To manage its reserves effectively during a shortfall, a bank should first evaluate the current reserve ratio to understand how much money it has compared to what it needs. Next, the bank should assess the impact on liquidity and compliance, ensuring that any actions taken will not violate regulations or harm its ability to meet customer needs. After this assessment, the bank can decide to call in loans or seek alternative funding to boost its reserves. Finally, the bank will adjust its reserve levels to meet the required ratio, ensuring it is in a stable position. For example, if a bank finds that it has only 5% reserves when it needs 10%, it will take these steps to find ways to increase its reserves to the required level.