In a Fractional-Reserve Banking System,a Decrease in Reserve Requirements

question 88

Multiple Choice

In a fractional-reserve banking system,a decrease in reserve requirements

• A)increases both the money multiplier and the money supply.
• B)decreases both the money multiplier and the money supply.
• C)increases the money multiplier,but decreases the money supply.
• D)decreases the money multiplier,but increases the money supply.

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Definitions:

Accretionary Prism

A geological structure formed by the accumulation of sedimentary and oceanic plate material scraped off a subducting plate, typically found at convergent plate boundaries.

Metamorphosed Rocks

Rocks that have undergone a transformation in mineralogy, texture, or chemical composition due to exposure to high pressures and temperatures.

Rotating Fault Blocks

geological structures that move around a vertical axis due to tectonic forces, altering the Earth's crust.

Layers Rotate

Geological process in which layers or strata of rock are tilted or turned from their original horizontal or vertical positions.