Multiple Choice
When the required reserve ratio is decreased, the excess reserves of member banks are
A) reduced, but the multiple by which the commercial banking system can lend is unaffected.
B) reduced and the multiple by which the commercial banking system can lend is increased.
C) increased and the multiple by which the commercial banking system can lend is increased.
D) increased and the multiple by which the commercial banking system can lend is reduced.
Correct Answer:
Verified
Correct Answer:
Verified
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