A decrease in the required reserve ratio will increase banks' excess reserves and decrease the money multiplier.
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Q217: Excess reserves equal total reserves plus required
Q235: The required reserve ratio is the percentage
Q236: As discussed in the text, a bank
Q237: Banks do not create money when they
Q238: In a simplified banking system, the money
Q240: If the Federal Reserve wishes to increase
Q241: The market in which banks make loans
Q242: Banks that wish to borrow required reserves
Q243: An increase in the discount rate by
Q244: A decrease in the discount rate by
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