How would an increase in the required reserve ratio affect banks' ability to create money?

Question

Quizplus · Accepted Answer

An increase in the required reserve ratio will force banks to hold more reserves, which will reduce the amount of money they can lend out and hence reduce their ability to create money. Banks will have fewer excess reserves available, which means that they will be able to lend out less money. This is because the amount of required reserves that a bank has to hold is directly proportional to the amount of deposits it takes, and an increase in the required reserve ratio will require banks to hold a larger percentage of their deposits as reserves.

How Would an Increase in the Required Reserve Ratio Affect