The Fed has tended not to use changes in the reserve requirement as a means of controlling the money supply because
A) only banks that are members of the Fed are subject to reserve requirements,and most banks do not belong to the Fed.
B) a change in the reserve requirement has only a very small impact on the money supply.
C) it is a crude monetary policy tool because a change in the requirement does not affect banks until about two weeks after the change is implemented.
D) it takes a long time for the Congress to approve a change in the reserve requirement.
Correct Answer:
Verified
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