An increase in the reserve ratio will _____ banks' ability to make loans.
A) increase
B) decrease
C) not change
D) make it more difficult to predict

Name: An increase in the reserve ratio will _____ banks' ability to make loans. A) increase B) decrease C) not change D) make it more difficult to predict
Brand: Quizplus
Rating: 4.8 (32 reviews)

Question

Quizplus · Accepted Answer

An increase in the reserve ratio decreases the amount of funds banks have available to lend out, thus reducing their ability to make loans.

An Increase in the Reserve Ratio Will _____ Banks' Ability