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When the Required Reserve Ratio Is Lowered

Question 63

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.

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