Which of the following is true regarding the reserve requirements?
A) The Fed changes them frequently because they are a power monetary policy tool.
B) The Fed does not change them much at all because taxation is a more impactful monetary policy tool.
C) The Fed changes them frequently because doing so simplifies banking operations.
D) The Fed does not change them much at all because doing so would make banking operations
Ans: D) The Fed does not change them much at all because doing so would make banking operations
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A decrease in the personal income tax rate ________ disposable income which ________ consumption
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
An increase in demand will increase equilibrium price to a greater extent:
A. if the product is a normal good. B. if the product is an inferior good. C. the less elastic the supply curve. D. the more elastic the supply curve.