Multiple Choice
If banks have no excess reserves, and the required reserve ratio is raised, the amount that banks can lend is:
A) reduced and the money supply contracts.
B) reduced and the money supply expands.
C) reduced and there is no change in the money supply.
D) increased and the money supply expands.
Correct Answer:
Verified
Correct Answer:
Verified
Q50: When the Fed buys federal government securities
Q51: When the Federal Reserve sells government bonds
Q52: If the economy is inflationary, the Fed
Q53: An increase in the required reserve ratio
Q54: Exhibit 15-4 Balance sheet of Tucker National
Q56: If there is a recession, the Fed
Q57: Which of the following policy actions by
Q58: Suppose the Fed purchases $100 million of
Q59: Which of the following compose the reserves
Q60: The interest rate in the federal funds