A Decrease in Reserve Requirements Could Lead to an

question 18

Multiple Choice

A decrease in reserve requirements could lead to an

• A)increase in bank lending.
• B)increase in the money supply.
• C)increase in the discount rate.
• D)increase in bank lending and an increase in the money supply.
• E)increase in bank lending and an increase in the discount rate.

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Definitions:

Legal Reason

A rationale or basis that is recognized or upheld by the legal system.

State Laws

The body of law enacted by each state or territory in the United States governing local affairs.

Discrimination

Unjust or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or sex.

Federal Laws

Regulations established by the national government that apply throughout the country, superseding state and local laws where there is conflict.