Solved

If the Desired Reserve Ratio Were Increased,what Impact Would This

Question 75

Multiple Choice

If the desired reserve ratio were increased,what impact would this have on the money supply and bank loans?


A) The money supply would tend to increase, but the outstanding loans of banks would tend to decrease.
B) Both the money supply and the outstanding loans of banks would tend to decrease.
C) Both the money supply and the outstanding loans of banks would tend to increase.
D) The money supply would tend to decrease, but the outstanding loans of banks would tend to increase.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents