Which of the Following Is an Outcome of an Increase

Multiple Choice

Which of the following is an outcome of an increase in the reserve requirement ratio?

A) DIs may hold fewer reserves against their transaction accounts.
B) DIs are able to lend out a greater percentage of their deposits.
C) Increased credit availability in the economy.
D) DIs are only able to lend a smaller percentage of their deposits than before.
E) A multiplier effect on the supply of DI deposits and thus the money supply.