Total Deposits Can Be Contracted by Holding the Amount of Reserves

question 139

True/False

Total deposits can be contracted by holding the amount of reserves constant but raising the reserve requirement.

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Definitions:

Colfax, Louisiana

A town in the US state of Louisiana, known historically for the Colfax Massacre of 1873, a violent event during the Reconstruction era.

Former Slaves

Describes individuals who were once enslaved but gained freedom, through various means such as emancipation, escape, or the end of slavery in their region.

Enforcement Acts

Three laws passed in 1870 and 1871 that tried to eliminate the Ku Klux Klan by outlawing it and other such terrorist societies; the laws allowed the president to deploy the army for that purpose.

Ku Klux Klan

A white supremacist hate group that has targeted black people, immigrants, leftists, Jews, and others in the United States since the 19th century.