Changes in reserve ratio have an inverse relationship with the money supply.
An decrease in reserve ratio allows banks to keep more excess reserves, and thus make more loans. More loans means an increase in the money supply.
An increase has the opposite effect.
As a addition to this answer, it can be stated that the so-called epicenter of monetary policy in the US is the reserves market controlled in part by the US Federal Reserve System. It is there that the overnight interest rate that the Fed targets is determined and its open market operations have their impact.
reserve bank of india frames monetary policy
The Federal Reserve
Monetary Policy
The federal reserve
monetary policy
reserve bank of India frames monetary policy
reserve bank of india frames monetary policy
The Federal Reserve
The Federal Reserve
Monetary Policy
The federal reserve
monetary policy
federal reserve system
yes
The Federal Reserve Monetary_policy_in_the_US_is_carried_out_primarily_by_which_of_the_following_agencies
The Federal Reserve alters monetary policy to influence the amount of money and credit in the U.S. economy. These changes affect interest rates and the performance of the economy. The end goals of monetary policy are sustainable economic growth, full employment and stable prices.
monetary policy