When the Reserve Requirement Is Increased

question 109

Multiple Choice

When the reserve requirement is increased:

• A) required reserves are changed into excess reserves.
• B) the excess reserves of member banks are increased.
• C) a single commercial bank can no longer lend dollar-for-dollar with its excess reserves.
• D) the excess reserves of member banks are reduced.

---

Definitions:

Public agency

A government organization that operates at the local, state, or national level to provide public services or enforce laws.

Web cameras

Devices that capture and transmit live video and audio over the internet or network, commonly used for video conferencing or surveillance.

Information technology

The use of computers, storage, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.

Metrics

Quantifiable measures that are used to track and assess the status or performance of a project, activity, or organizational goal.