A decrease in the required reserve ratio will:

a. reduce commercial bank loans and reduce the money supply.
b. increase commercial bank loans and reduce the money supply.
c. increase commercial bank loans and increase the money supply.
d. decrease commercial bank loans and increase the money supply.


c

Economics

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Which of the following statements are false?

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a. True b. False Indicate whether the statement is true or false

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The _____ rate is the interest rates charged when a bank lends reserves to another bank

A) federal funds B) discount C) prime D) reserve rate

Economics