Decreasing 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 required reserves in the banking system
D) an expansionary policy because it raises the amount of total reserves in the banking system
E) an expansionary policy because it raises the amount of excess reserves in the banking system
Correct Answer:
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Q142: The Fed primarily uses the reserve requirement
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Q213: The largest component of the Federal Reserve's
Q215: Increasing the required reserve ratio is
A)a contractionary
Q216: Raising the discount rate is
A)an expansionary policy
Q219: By reducing the required reserve ratio,the Fed
Q220: Lowering the discount rate is a way
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Q222: The world's largest source of bogus American
Q223: Transactions using debit cards and other electronic
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