Multiple Choice
If the desired reserve ratio decreases,then
A) banks' desired reserves increase and their excess reserves decrease.
B) bank customers become more willing to make deposits in banks.
C) banks are able to make more loans.
D) banks are forced to buy fewer government securities.
E) banks' desired reserves decrease and their excess reserves do not change.
Correct Answer:

Verified
Correct Answer:
Verified
Q139: Which of the following is NOT held
Q140: M2 consists of<br>A)M1 plus traveler's checks.<br>B)M1 plus
Q141: The Fed is a central bank and
Q142: Physical currency is _ popular than e-cash,_.<br>A)less;and
Q143: The president of which Federal Reserve Bank
Q145: For a commodity or token to be
Q146: If the Fed makes an open market
Q147: Excess reserves are the<br>A)same as the required
Q148: A bank has reserves of $50,deposits of
Q149: M2 equals<br>A)M1 and is just another name