Which of the Following Is an Outcome of an Increase

question 37

Multiple Choice

Which of the following is an outcome of an increase in the reserve requirement ratio?

• A)DTIs may hold fewer reserves against their transaction accounts.
• B)DTIs are able to lend out a greater percentage of their deposits.
• C)Increased credit availability in the economy.
• D)DTIs are only able to lend a smaller percentage of their deposits than before.
• E)A multiplier effect on the supply of DTI deposits and thus the money supply.

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Definitions:

Month Ended

Refers to the closing of the accounting period, usually the last day of the month, where businesses summarize financial activities.

Unearned Revenue Account

Refers to money received by a company for goods or services yet to be delivered or performed, recognized as a liability on the balance sheet.

Debit Balance

An accounting term indicating that a particular account has more debits than credits, often referring to an account's overall debt or expenditure.

Credit Balance

In accounting, it refers to the balance on the right side of a ledger account, indicating the amount that a company owes or liabilities.