If the Federal Reserve Eliminated All Reserve Requirements the Most

Multiple Choice

If the Federal Reserve eliminated all reserve requirements the most likely result would be

A) a large number of depository institution failures because they would not have enough liquidity.
B) the Federal reserve would be unable to control the money supply.
C) banks would no longer be able to clear checks at the Federal Reserve because there would be no required reserves.
D) the size of the money multiplier might fluctuate considerably making the Federal Reserve's job of controlling the money supply more difficult.