Increasing the Required Reserve Ratio Is

question 169

Multiple Choice

Increasing the required reserve ratio is

• A)a contractionary policy because it lowers the amount of total reserves in the banking system
• B)a contractionary 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