A Change in the Required Reserve Ratio Will Impact a Nation's

question 19

Multiple Choice

A change in the required reserve ratio will impact a nation's money supply by changing the:

• A) denominations of currency that are printed and available to banks.
• B) amount that is held in excess reserves and the public's willingness to make deposits.
• C) holdings of government bonds by the Federal Reserve and the cost of buying them.
• D) size of the potential deposit multiplier and the amount that is held in excess reserves.