Which of the monetary policy tools can alter both the level of excess reserves and the money multiplier?

Question

Quizplus · Accepted Answer

The reserve ratio determines the minimum amount of reserves a bank must hold against deposits. By changing the reserve ratio, the level of excess reserves can be altered, which, in turn, affects the money multiplier. A higher reserve ratio reduces excess reserves and the money multiplier, while a lower reserve ratio increases both. Open-market operations affect the level of excess reserves, but they do not directly affect the money multiplier. The discount rate and the federal funds rate influence the quantity of reserves, but not the money multiplier.

Which of the Monetary Policy Tools Can Alter Both the Level