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:

Pectoralis Group

A group of muscles located on the chest, including the pectoralis major and pectoralis minor, important for the movement of the shoulder.

Ventral Surface

The front or belly side of the body in animals, opposite of the dorsal surface.

Spinous Processes

Projections of the vertebrae that can be felt through the skin along the midline of the back, serving as attachment points for muscles and ligaments.

Rhomboideus Group

A set of muscles in the upper back that connect the spine to the scapula, aiding in shoulder movement and stability.