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What accurately describes how raising the required reserve reserve ratio reduces the money supply?
Wiki User
∙ 6y ago
When the required reserve ratio is raised, banks must loan out a smaller portion of their reserves, resulting in fewer loans.
Brandy Sipes
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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 describes how lowering the required reserve ratio reduces the money supply?
When the required reserve ratio is lowered, banks can loan out more money.
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