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When the Federal Reserve Decreases Reserve Requirements, What Should Be

Question 22

Multiple Choice

When the Federal Reserve decreases reserve requirements, what should be the result?


A) T he money supply decreases.
B) B anks have more money "in reserve."
C) T he money supply remains stable.
D) B anks have less money to lend.
E) B anks have more money to lend.

Correct Answer:

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