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Decreasing the reserve requirement involves which type of economic policy?
Wiki User
∙ 10y ago
Monetary Policy
Wiki User
∙ 10y ago
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Decreasing the reserve requirement will?
will discourage aggregate demand.
What are the federal reserve system's tools of monetary policy?
The three tools of the Federal Reserve are open market operations, discount rate, and reserve requirement.
Which of these can affect the economy by increasing or decreasing the money supply?
The Federal Reserve Board can affect the economy by increasing or decreasing the money supply.
How can the reserve requirement for banks be used to slow the economys growth?
Increasing the reserve requirement for banks will make less money available to borrowers and thus slow the economy's growth.
What is the current reserve requirement of bangko sentral ng pilipinas?
19%
Decreasing the reserve requirement will?
will discourage aggregate demand.
What are the federal reserve system's tools of monetary policy?
The three tools of the Federal Reserve are open market operations, discount rate, and reserve requirement.
Which of these can affect the economy by increasing or decreasing the money supply?
The Federal Reserve Board can affect the economy by increasing or decreasing the money supply.
What is the purpose the reserve requirement?
It protects public deposits.
How can the reserve requirement for banks be used to slow the economys growth?
Increasing the reserve requirement for banks will make less money available to borrowers and thus slow the economy's growth.
Why did the Members banks must leave this with the Fed?
Reserve requirement
What is a result of high reserve requirement?
Less money in the economy.
In reference to federal reserve policy what are reserve requirement?
the percentage of a bank's total deposits that must be kept in its possession
The percentage of the bank's total deposit that it must keep in its own vaults is called the?
It is the reserve requierment
What is the relationship between the monetary multiplier and reserve ratios?
Money Multiplier is inverse of Reserve Requirement. That is, m = 1/R
What term indicates the percentage of banks total deposit that must be kept in its own vaults?
reserve ratio
What are the funds that banks use to satisfy the reserve requirement?
excess reserves
