Lowering the reserve ratio:
A. Increases the total reserves in the banking system
B. Also reduces the discount rate
C. Turns required reserves into excess reserves
D. Reduces the amount of excess reserves the banks keep
C. Turns required reserves into excess reserves
Economics
You might also like to view...
If good A is a normal good and income increases, the equilibrium price of A ________ and the equilibrium quantity of A ________
A) rises; increases B) rises; decreases C) falls; decreases D) falls; increases
Economics
Refer to the scenario above. Which investment option will a risk-seeking individual choose?
A) He will choose to invest in Option A. B) He will choose to invest in Option B. C) He will choose to invest in Option C. D) He will be indifferent in investing in any of the three options.
Economics