If the Fed Lowers the Required Reserve Ratio,__________ in the Banking

question 147

Multiple Choice

If the Fed lowers the required reserve ratio,__________ in the banking system will remain unchanged but __________ will rise.This will (likely) lead to an increase in new loans and checkable deposits and a(n) __________ in the money supply.

• A) excess reserves; vault cash; increase
• B) reserves; vault cash; decrease
• C) reserves; excess reserves; increase
• D) reserves; required reserves; increase
• E) none of the above

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Definitions:

If Statement

A programming conditional statement that executes a block of code if a specified condition is true.

Conditional Expression

An expression in programming that evaluates to true or false and dictates the flow of control based on specified conditions.

Data Macro

A feature in database software that allows for the automation of tasks such as data validation or notifications when data is changed.

Embed Macro

A method to insert a small program or script into a document or application that can automate tasks or add functionality.