Multiple Choice
Dollar Bank is currently loaned up. If the required reserve ratio is lowered,
A) Dollar Bank's net worth will increase.
B) Dollar Bank will have excess reserves that it can lend out.
C) Dollar Bank will still be loaned up because it did not receive any additional deposits.
D) Dollar Bank's actual reserves will increase, but it will still be loaned up.
Correct Answer:
Verified
Correct Answer:
Verified
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