Decreasing the Required Reserve Ratio Is

question 59

Multiple Choice

Decreasing 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 required reserves in the banking system
• D)an expansionary policy because it raises the amount of total reserves in the banking system
• E)an expansionary policy because it raises the amount of excess reserves in the banking system

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Definitions:

Measurement

The process or the result of quantifying objects, phenomena, or relationships according to established rules and units.

Weight Gain

The increase in body weight over a period, which may result from growth, excess calorie intake, or other factors.

Perfect Reliability

Perfect reliability refers to a hypothetical situation where a measurement is completely free from error, achieving a reliability coefficient of 1.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression, or a measure used to describe a statistical relationship.