A Higher Reserve Requirement

question 9

Multiple Choice

A higher reserve requirement

• A)Further limits deposit creation.
• B)Increases the ability of banks to make loans.
• C)Lowers the interest rate.
• D)Increases the borrowing capability of borrowers.

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Definitions:

Modern Concept

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Value

The importance, worth, or usefulness of something, often measured in terms of money, but also can be subjective, depending on individual assessment.

Law Merchant

In England, the commercial law developed by merchants who needed a set of rules to govern their business transactions.

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