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Disadvantages of Using Reserve Requirements to Control the Money Supply

Question 39

Multiple Choice
Disadvantages of using reserve requirements to control the money supply include
A) their overly-powerful impact on the money supply.
B) creating potential liquidity problems for banks with high levels of excess reserves.
C) their overly-powerful impact on the monetary base.
D) all of the above.

Disadvantages of using reserve requirements to control the money supply include


A) their overly-powerful impact on the money supply.
B) creating potential liquidity problems for banks with high levels of excess reserves.
C) their overly-powerful impact on the monetary base.
D) all of the above.

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