0
Which of the following best explains why raising the required reserve ratio results in a decrease in the money supply?
Wiki User
∙ 12y ago
When the required reserve ratio is high, banks must loan out a smaller portion of their reserves, resulting in fewer loans.
Wiki User
∙ 12y ago
JIMMY EDGE22
Add your answer:
Earn +20 pts
Which of the following can the Fed accomplish by raising or lowering the required reserve ratio?
Increase or decrease the money supply
What best explains why raising the required reserve ratio results in a decrease in the money supply?
When the required reserve ratio is high, must loan out a smaller portion of their reserves, resulting in fewer loans.
Why is raising the required reserve ratio results in a decrease in the money supply?
When the required reserve ratio is high, banks must loan out a smaller portion of their reserves, resulting in fewer loans.
Would cause a decrease in the supply of money?
raising of interest rates
Which of the following is not used by government to control the economy?
Raising an army
Which of the following can the Fed accomplish by raising or lowering the required reserve ratio?
Increase or decrease the money supply
What best explains why raising the required reserve ratio results in a decrease in the money supply?
When the required reserve ratio is high, must loan out a smaller portion of their reserves, resulting in fewer loans.
Why is raising the required reserve ratio results in a decrease in the money supply?
When the required reserve ratio is high, banks must loan out a smaller portion of their reserves, resulting in fewer loans.
Does the molarity of a solution decrease on raising the temperature of the solution?
If you raise a solution temperature the molarity will decrease.
Would cause a decrease in the supply of money?
raising of interest rates
The following is not a duty of the judicial branch of government?
raising money.
What effects of increase does density do?
Density decrease when the temperature is raising.
Which of the following is not used by government to control the economy?
Raising an army
What would cause an increase in aggregate demand in the short run?
if decrease a price or if the expectation of raising a price
A decrease in net taxes will?
Raise aggregate expenditure by raising disposable income, thereby increasing consumption.
What can the Fed accomplish by raising or lowering the required reserve ratio?
If they lower the ratio, banks do not have to hold as much cash (which gains no interest), the banks will attempt to loan this money out and make money, this can stimulate investment. Increase or decrease in the money supply (APEX)
Which of the following does NOT add to the cost of consumer goods and services?
raising minimum wage
