When the Reserve Requirement Is Increased

question 75

Multiple Choice

When the reserve requirement is increased,

• A) required reserves are changed into excess reserves.
• B) the excess reserves of banks are increased.
• C) a single commercial bank can no longer lend dollar-for-dollar with its excess reserves.
• D) the excess reserves of banks are reduced.

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Definitions:

Urban Industrial Society

A society characterized by living in urban areas with economies based predominantly on manufacturing and other forms of industrial production.

Urban Crises

Refers to a range of problems faced by cities, including overcrowding, housing shortages, inadequate infrastructure, and environmental pollution.

Housing Shortage

A condition in which there are not enough homes available to meet the demand of the population, often leading to increased prices and homelessness.

Traffic Congestion

The condition on road networks that occurs as use increases, characterized by slower speeds, longer trip times, and increased vehicular queueing.