Which of the following is not a consequence of the Fed changing the reserve requirement?

A) Changes in the ratio are easily incorporated into banks' routine management.
B) Changes in the ratio effectively places a tax on banks' deposit taking and lending activities.
C) Decreasing the ratio will increase excess reserves.
D) Increasing the ratio will decrease the amount of reserves banks have to loan.


A

Economics

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

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