If the Board of Governors of the Federal Reserve System increases the reserve requirement, this change will ________.
A. decrease the excess reserves of member banks and thus decrease the money supply
B. decrease the excess reserves of member banks and thus increase the money supply
C. increase the excess reserves of member banks and thus decrease the money supply
D. increase the excess reserves of member banks and thus increase the money supply
Answer: A
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Economic growth and development in LDCs are low because many of them lack:
a. saving. b. infrastructure. c. a political environment favorable to growth. d. All of the answers are correct.
John Maynard Keynes developed his economic theories in the
A. 1900s. B. 1890s. C. 1930s. D. 2000s.
The quantity equation states that
A) M + V = P + Y. B) the money supply (M) divided by the velocity of money (V) equals the price level (P) divided by real output (Y), i.e., M/V = P/Y. C) M × V = P × Y. D) M - V = P - Y.
The Glass-Steagall Act
A) was passed in response to the financial crisis of 2007-2009. B) requires that CEO's personally certify the accuracy of financial statements. C) prevented financial firms from being both commercial banks and investment banks. D) all of the above