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The credit multiplier decreases.

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13y ago

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What happens to the WACC when the federal reserve tightens credit?

WACC will increase.


What is credit multiplier?

A multiplier which deals with financial matters 1/1-mpc


How do you credit your reserve with a pass on Howrse?

You credit your reserve by going up and clicking on the [credit by (number)] then it should come up with a page that says things about crediting your reserve


How do you cure credit crunch?

By easing the monetary policies. By reducing cash reserve ratio, statutory liquidity ratio and repo rate, the amount of cash in circulation in the economy can be increased. This can help cure credit crunch...


Credit reserve ratio?

not sure


What type of money does The money multiplier effect shows that when a bank has a lower reserve rate they are able to generate what money?

The money multiplier effect illustrates that when a bank has a lower reserve requirement, it can generate more "credit money." This type of money is created through lending, as banks can lend out a larger portion of their deposits, effectively increasing the total money supply in the economy. As loans are made and deposited back into the banking system, this process can continue, amplifying the initial amount of money deposited.


What is Reserve borrowing capacity?

Unused credit lines


Who declares credit policy in India?

reserve bank of India


Who declares the credit policy in India?

its by reserve bank of india..


What is the accounting entry to reduce a reserve account?

Reserve account can be reduce as follows: [Debit] Reserve account xxxx [Credit] Share capital account xxxx


How do you increase a liability?

A liability account is a credit account, and credit accounts can be increased by writing a credit in the journal entry. Therefore, a liability is increased by crediting it.


How many times Reserve Bank declares its credit policy?

155