A change in the reserve requirement is the tool used least often by the Fed because it:
A. Does not affect bank reserves.
B. Can cause abrupt changes in the money supply.
C. Does not affect the money multiplier.
D. Has no impact on the lending capacity of the banking system.
B. Can cause abrupt changes in the money supply.
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Explain how international trade and trade policy helped South Korea transform itself from an underdeveloped country to a high-income country in the space of a single generation. You might begin by discussing South Korea's trade strategy
Why is international trade of such vital importance to South Korea?
(Consider This) In response to the terrorist attacks of September 11, 2001, the government decided to allocate more resources toward defense goods. The government's decision reflects their assessment that:
A. the marginal benefits of additional defense goods outweighed the marginal cost. B. the marginal cost of additional defense goods outweighed the marginal benefit. C. there cannot be too many defense goods. D. civilian goods are not worth producing.