Everything else held constant,a decrease in the required reserve ratio on checkable deposits will mean

Name: Everything else held constant,a decrease in the required reserve ratio on checkable deposits will mean
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When the required reserve ratio on checkable deposits decreases, banks are required to hold less money in reserves, which means they have more money to lend out. This leads to an increase in the money supply as more money is available for borrowing and spending.

Everything Else Held Constant,a Decrease in the Required Reserve Ratio