If the required reserve ratio was increased, then:
A) the money supply would tend to decrease, but the outstanding loans of banks would tend to increase.
B) both the money supply and the outstanding loans of banks would tend to decrease.
C) the money supply would tend to increase, but the outstanding loans of banks would tend to decrease.
D) both the money supply and the outstanding loans of banks would tend to increase.
Correct Answer:
Verified
Q199: Suppose you found $10,000 hidden under a
Q200: If banks faced a 100 percent reserve
Q201: Which of the following is true?
A)Demand deposits
Q202: Which of the following is true?
A)The FDIC
Q203: An increase in currency in circulation would
Q205: An increase in demand deposits would _
Q206: Uncertainty may cause banks to hold larger
Q207: A conversion of checking account balances into
Q208: Which of the following would most likely
Q209: Other things constant, a decrease in credit
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