Increasing the required reserve ratio is
A) a contractionary policy because it lowers the amount of total reserves in the banking system
B) a contractionary policy because it lowers the amount of excess reserves in the banking system
C) an expansionary policy because it raises the amount of total reserves in the banking system
D) an expansionary policy because it raises the amount of excess reserves in the banking system
E) an expansionary policy because it raises the amount of required reserves in the banking system
Correct Answer:
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Q142: The Fed primarily uses the reserve requirement
Q147: If a bank receives $1,000 in currency
Q210: To increase the money supply,the Fed might
A)increase
Q211: To increase the money supply,the Fed might
A)increase
Q212: The majority of the Fed's liabilities are
A)discount
Q213: The largest component of the Federal Reserve's
Q216: Raising the discount rate is
A)an expansionary policy
Q218: Decreasing the required reserve ratio is
A)a contractionary
Q219: By reducing the required reserve ratio,the Fed
Q220: Lowering the discount rate is a way
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