Multiple Choice
When the required reserve ratio is lowered,
A) increases, and the amount of excess reserves increases in the banking system.
B) decreases, and the amount of excess reserves increases in the banking system.
C) decreases, and the amount of excess reserves decreases in the banking system.
D) increases, and the amount of excess reserves decreases in the banking system.
Correct Answer:

Verified
Correct Answer:
Verified
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