Multiple Choice
If banks'desired reserve ratio increases from 0.10 to 0.15, the public still desires to hold the same amount of currency, and the Fed takes no actions, the money supply will:
A) increase.
B) decrease.
C) not change.
D) either increase or decrease.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q19: When a baker exchanges a pie for
Q22: In the long run, countries with higher
Q24: Assets of the commercial banking system include:<br>A)reserves
Q28: In a fractional-reserve banking system the reserve/deposit
Q41: The most important tool of monetary policy
Q47: In Macroland there is $1,000,000 in currency
Q48: In Macroland there is $12,000,000 in currency.The
Q60: Money market mutual funds are _ the
Q71: The financial system consists of financial _,
Q102: When a bank makes a loan by