In 1991,the Federal Reserve Lowered the Reserve Requirement from 12

question 119

Multiple Choice

In 1991,the Federal Reserve lowered the reserve requirement from 12 percent to 10 percent.Other things the same this should have

• A)increased both the money multiplier and the money supply.
• B)decreased both the money multiplier and the money supply.
• C)increased the money multiplier and decreased the money supply.
• D)decreased the money multiplier and increased the money supply.

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Definitions:

Interest Calculations

The process of determining the interest payment on a loan or investment, based on the principal, rate, and time.

Merchandise

Merchandise consists of goods that a retailer purchases to sell to its customers for profit.

Journalize

The process of recording financial transactions in a company's journal as part of the accounting cycle.

Medicare Tax

A federal tax that funds Medicare, the U.S. healthcare program for individuals older than 65 or with certain disabilities, deducted from employee paychecks.