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To manage the economy by increasing or decreasing the amount of loans being made

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Q: What best describes the purpose of raising and lowering the required reserve ratio?
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What best describes the purpose of raising and lower the required reserve ratio?

To manage the economy by increasing or decreasing the amount of loans being made


Which of the following can the Fed accomplish by raising or lowering the required reserve ratio?

Increase or decrease the money supply


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What FED accomplish by raising or lowering the required reserve ratio?

To manage the economy by increasing or decreasing the amount of loans being made


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A mechanism for raising or lowering ships in a river that has rapids or waterfalls is called?

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What accurately describes how raising the required reserve ratio reduces the money supply?

When the required reserve ratio is raised, banks must loan out a smaller portion of their reserves, resulting in fewer loans.


What accurately describes how raising the required reserve ratios reduces the money supply?

When the required reserve ratio is raised, banks must loan out a smaller portion of their reserves, resulting in fewer loans.


What accurately describes how raising the required reserve reserve ratio reduces the money supply?

When the required reserve ratio is raised, banks must loan out a smaller portion of their reserves, resulting in fewer loans.


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