A reduction in the required reserve ratio has the instant effect of:

a. Increasing bank reserves.
b. Increasing excess reserves.
c. Increasing bank shareholders' equity.
d. None of the above is correct.
e. Increasing the monetary base.


.B

Economics

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An economy that self-corrects a recessionary gap will experience falling nominal wages, rising real wages, and falling output

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

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M2 is a definition of money largely confined to which function(s) of money?

A) unit of account B) store of value C) medium of exchange D) B and C are both correct.

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If a gamble has an expected value of $10, then one can predict that:

A. all risk-neutral people will take the gamble. B. only risk-averse people will take the gamble. C. the gamble never pays out more than $10. D. no risk-averse person will take the gamble.

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Charlie is willing to pay $10 for a T-shirt that is priced at $9. If Charlie buys the T-shirt, then his consumer surplus is

A. $19. B. $0.90. C. $1. D. $90.

Economics