Lowering the Reserve Ratio

question 369

Multiple Choice

Lowering the reserve ratio

• A) increases the total reserves in the banking system.
• B) also reduces the discount rate.
• C) turns required reserves into excess reserves.
• D) reduces the amount of excess reserves the banks keep.

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Definitions:

Proprioception

The body's ability to perceive its own position in space, important for coordination and balance.

Golgi Tendon Organs

Sensory receptors located at the junctions of muscles and tendons that monitor tension developed in muscles and help prevent muscle damage.

Muscle Spindles

Sensory receptors within the belly of muscles that primarily detect changes in the length of the muscle.