When reserve requirements are increased, the:

A. excess reserves of commercial banks will decrease.
B. excess reserves of commercial banks will increase.
C. U.S. Treasury will have to borrow additional funds.
D. money supply will rise.

Answer: A

Economics

You might also like to view...

The risk that a borrower has a greater understanding about their potential future behavior than a potential lender is known as ________

A) the problem of adverse selection B) the problem of moral hazard C) ornamental torsion D) the asymmetric innovation problem

Economics

The Average Product of Labor is

A) the change in total product resulting from an extra unit of labor, holding other factors constant. B) the ratio of output to the number of workers used to produce that output. C) the amount of output that can be produced by a given amount of labor. D) equal to the marginal product of labor when the average product is increasing.

Economics