Ceteris paribus, if the Fed reduces the reserve requirement, then:
A. Total reserves increase.
B. Total deposits decrease.
C. The lending capacity of the banking system increases.
D. The money multiplier decreases.
C. The lending capacity of the banking system increases.
Economics
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An appreciation of the U.S. dollar occurs when
A) the international price of the dollar falls. B) the international price of the dollar rises. C) the supply of dollars in international markets increases. D) the U.S. demand for foreign currencies increases.
Economics
A rise in the nominal exchange rate ($/€) represents a depreciation of the dollar relative to the euro, but a rise in the real exchange rate ($/€) represent an appreciation of the dollar. Explain why this is true
What will be an ideal response?
Economics