0
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.
What else can I help you with?
Who frames Indian monetary policy?
reserve bank of india frames monetary policy
What agency handles monetary policy?
The Federal Reserve
Decreasing the reserve requirement involves which type of economic policy?
Monetary Policy
Which agencie in the US Carrie out a monetary policy?
The federal reserve
What is the Federal Reserve System in charge of what policy?
monetary policy
Who framed monetary policy?
reserve bank of India frames monetary policy
Who frames Indian monetary policy?
reserve bank of india frames monetary policy
Who regulates the nation's monetary policy?
The Federal Reserve
What agency handles monetary policy?
The Federal Reserve
Decreasing the reserve requirement involves which type of economic policy?
Monetary Policy
Which agencie in the US Carrie out a monetary policy?
The federal reserve
What is the Federal Reserve System in charge of what policy?
monetary policy
What institution is responsible for conducting monetary policy?
federal reserve system
Is the federal reserve responsible for using monetary policy tools?
yes
Monetary policy in the US is carried out primarily by what agencies?
The Federal Reserve Monetary_policy_in_the_US_is_carried_out_primarily_by_which_of_the_following_agencies
Why does the Federal Reserve alter monetary policy?
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.
Which policy is the responbiliy of the federal reserve system to contribute to the strength and vitality of the US economy?
monetary policy
