The Dodd-Frank Act attempts to prevent future financial crises by making major changes to the U.S. financial system, including

A. increasing banks' reserve requirements.
B. increasing capital requirements for banks.
C. reducing the interest rates banks can charge their customers for loans.
D. paying banks interest on their reserve holdings.


Answer: B

Economics

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A central bank's attempt to prevent an appreciation of its currency can stimulate domestic inflation if the ________ of its currency leads to ________ international reserves which ________ the monetary base

A) purchase; higher; increases B) purchase; lower; decreases C) sale; lower; decreases D) sale; higher; increases

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The simplest money-creation multiplier is equal to

A) eD. B) H/e. C) 1/e. D) e/H. E) H/D.

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The purchase of a new house is included in government spending

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

Economics

International capital flows in an open economy have the effect of

A. reducing the power of monetary policy. B. increasing the power of monetary policy. C. increasing the power of monetary policy in an expansion and reducing it in a contraction. D. reducing the power of monetary policy in an expansion and increasing it in a contraction.

Economics