Multiple Choice
Which of the following statements about the reserve requirement is true?
A) An increase in the reserve requirement increases the money multiplier.
B) The size of a bank's reserve requirement is directly related to its loan-making ability.
C) All depository institutions must meet the same reserve requirements on the same types of deposits.
D) The Fed regularly changes the reserve requirement on short notice to change the amount of money in the system.
Correct Answer:
Verified
Correct Answer:
Verified
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