Solved

Though a Powerful Tool, the Reserve Requirement Is Seldomly Used

Question 52

Multiple Choice

Though a powerful tool, the reserve requirement is seldomly used by the Fed to control the money supply because:


A) it causes significant disruptions in the banking system.
B) using the reserve requirement can be inflationary.
C) it is very difficult for the Fed to monitor the reserve requirement.
D) it takes a long time for the policy to be implemented.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents