Other Things Equal, If the Required Reserve Ratio Was Lowered

question 51

Multiple Choice

Other things equal, if the required reserve ratio was lowered,

• A) banks would have to reduce their lending.
• B) the size of the monetary multiplier would increase.
• C) the actual reserves of banks would increase.
• D) the federal funds interest rate would rise.

---

Definitions:

Teamwork

The collaborative effort of a group to achieve a common goal or to complete a task in the most effective and efficient way.

Consensus

An agreement or alignment of opinions among members of a group.

Improved Acceptance

Enhanced approval or agreement with an idea, product, or change by a wider audience.

Effective Teams

Groups of individuals working collaboratively towards a common goal, characterized by clear communication, mutual support, and strong coordination.