To decrease the money supply, the Fed could the reserve requirement ratio.
A)increase
B)stabilize
C)reduce
D)eliminate

Name: To decrease the money supply, the Fed could the reserve requirement ratio. A)increase B)stabilize C)reduce D)eliminate
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Question

To decrease the money supply, the Fed could              the reserve requirement ratio. ​
A)increase
B)stabilize
C)reduce
D)eliminate

Quizplus · Accepted Answer

Increasing the reserve requirement ratio means banks must hold a larger fraction of deposits as reserves, reducing the amount they can lend out, which decreases the money supply.

To Decrease the Money Supply, the Fed Could The