When the Federal Reserve Decreases Reserve Requirements, What Should Be

question 4

Multiple Choice

When the Federal Reserve decreases reserve requirements, what should be the result?

• A) Banks have more money to lend.
• B) The money supply decreases.
• C) Banks have less money to lend.
• D) The money supply remains stable.
• E) Banks have more money "in reserve."

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Definitions:

DNA Probe

A strand of nucleic acid that can be labeled and used to hybridize to a complementary molecule from a mixture of other nucleic acids.

Plasmid Cloning Vector

A small, circular DNA molecule used in genetic engineering to artificially replicate foreign genetic material within a host organism.

DNA Cloning

The process of making multiple, identical copies of a specific segment of DNA, often used in genetic engineering and research.

DNA Ligase

A substance that assists in the fusion of DNA strands by enabling the development of a phosphodiester bond.