An Increase in the Required Reserve Ratio Would Be

question 159

Multiple Choice

An increase in the required reserve ratio would be

• A) a restrictive policy because it lowers the amount of total reserves in the banking system.
• B) a restrictive policy because it lowers the amount of excess reserves in the banking system.
• C) an expansionary policy because it raises the amount of total reserves in the banking system.
• D) an expansionary policy because it raises the amount of excess reserves in the banking system.
• E) an expansionary policy because it raises the amount of required reserves in the banking system.

---

Definitions:

Units of Chicken

A measurement term referring to the quantity of chicken, often used in the context of agriculture, production, or sales.

Units of Beef

A standard measurement used to quantify beef for purchase, sale, or processing, often in pounds or kilograms.

Decrease in Price

A reduction in the cost of a good or service, often leading to increased demand or changes in consumer behavior.

Increase in Price

Describes a situation where the cost of a good or service rises, potentially affecting demand and supply dynamics.