If a bank's checkable deposits increase significantly, what is the primary action it should consider to maintain its reserve ratio?

When a bank's checkable deposits increase significantly, it means that more money is available for customers to withdraw. To maintain its reserve ratio, which is the percentage of deposits the bank must keep on hand and not lend out, the bank should consider increasing its reserves. This can be done by either holding back more of the new deposits in cash or by borrowing from other banks or the central bank to ensure it meets the required ratio. For example, if a bank receives an extra $1 million in deposits, it might decide to keep $100,000 as reserves instead of lending it all out. This way, the bank stays compliant with regulations and can meet customer withdrawal requests.