Multiple Choice
If there are no excess reserves in the banking system and the Fed lowers the required reserve ratio,it follows that banks will now have __________,which they can use to extend loans and create new __________.
A) positive excess reserves; checkable deposits
B) negative excess reserves; currency
C) positive excess reserves; currency
D) more vault cash; checkable deposits
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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