Answer:
In this situation, the Bank of Uchenna has two options:
It can borrow extra funds to meet the reserve requirements in the interbank market. These funds would be borrowed at the federal funds rate if the bank is the U.S., or at the specific interbank rate applying to the area where the bank is located.
Or it can borrow those extra funds from the central monetary authority, in other words, the central bank (the fed in the case of the U.S.), since one of the main functions of a central bank is acting as lender of last result for financial institutions when these institutions are in need.
In this situation, Uchenna Bank has two options that can be done by the bank without calling in loans or selling property :
These funds are borrowed at the federal funds rate if the bank is based in the United States, or at a specific interbank rate applicable to the area in which the bank is located.
The central bank's main functions is to act as a lender to the central bank, you can borrow these additional funds from the central bank, the central bank (FRB in the United States).
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