If the Fed Lowers the Required Reserve Ratio,__________ in the Banking

Multiple Choice

If the Fed lowers the required reserve ratio,__________ in the banking system will remain unchanged but __________ will rise.This will (likely) lead to an increase in new loans and checkable deposits and a(n) __________ in the money supply.

A) excess reserves; vault cash; increase
B) reserves; vault cash; decrease
C) reserves; excess reserves; increase
D) reserves; required reserves; increase
E) none of the above