Which of the following is an outcome of an increase in the reserve requirement ratio?
A) DTIs may hold fewer reserves against their transaction accounts.
B) DTIs are able to lend out a greater percentage of their deposits.
C) Increased credit availability in the economy.
D) DTIs are only able to lend a smaller percentage of their deposits than before.
E) A multiplier effect on the supply of DTI deposits and thus the money supply.
Correct Answer:
Verified
Q26: Which of the following is an outcome
Q27: A DI offers a $500 minimum balance
Q28: The concept of constrained optimization facing an
Q30: Because of penalties imposed for early withdrawal,
Q34: Most large Canadian banks directly issue commercial
Q35: Why do FIs face a return or
Q62: Property-casualty insurance companies can reduce their exposure
Q67: Which of the following observations is NOT
Q73: Reliance on purchased or borrowed funds will
Q77: The increased securitization of bank loans has
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents