Which of the following is true regarding the reserve requirements?

A) The Fed changes them frequently because they are a power monetary policy tool.
B) The Fed does not change them much at all because taxation is a more impactful monetary policy tool.
C) The Fed changes them frequently because doing so simplifies banking operations.
D) The Fed does not change them much at all because doing so would make banking operations


Ans: D) The Fed does not change them much at all because doing so would make banking operations

Economics

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