An Increase in the Reserve Requirement Increases Reserves and Decreases

question 5

True/False

An increase in the reserve requirement increases reserves and decreases the money supply.

---

Definitions:

Control Account

A general ledger account that summarizes and controls the detailed data recorded in subordinate ledger accounts.

Subsidiary Ledger

A detailed ledger containing all account details and transactions for individual component accounts that roll up into a general ledger summary account.

Special Journals

Accounting books designed for recording specific types of transactions in a detailed and efficient manner.

Purchases Journal

A special journal that records all purchases of merchandise on account.