In February 2010,the Central Bank of Brazil raised reserve requirements.By raising reserve requirements,Brazil was attempting to:

Question

Quizplus · Accepted Answer

By raising reserve requirements, the Central Bank of Brazil was trying to decrease the money supply. Reserve requirements refer to the amount of funds that banks must hold in reserve, and increasing them reduces the amount of money available for lending and spending, ultimately reducing the money supply.

In February 2010,the Central Bank of Brazil Raised Reserve Requirements