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    Macroeconomics Principles Study Set 1
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    Exam 12: Money Creation and the Federal Reserve
  5. Question
    When Banks Hold Excess Reserves, They
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When Banks Hold Excess Reserves, They

Question 45

Question 45

Multiple Choice

When banks hold excess reserves, they


A) increase the amount of loans to the public.
B) reduce the actual money multiplier.
C) increase the money supply.
D) increase the reserve requirement.

Correct Answer:

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