Raising the Required Reserve Ratio __________ the Simple Deposit Multiplier

question 35

Multiple Choice

Raising the required reserve ratio __________ the simple deposit multiplier which will __________ the economy's money supply.

• A) raises; increase
• B) raises; decrease
• C) lowers; increase
• D) lowers; decrease

---

Definitions:

Work Sheet

A document used by accountants to gather information for year-end financial reports, facilitating the preparation of financial statements and adjustments.

Work Sheet

An informal document used by accountants to organize and summarize financial data for the preparation of financial statements.

Financial Statements

Concise financial records that encapsulate a company's financial performance, position, and cash flows over a specific period.

Expense Account

A category within accounting that tracks money spent or costs incurred by a business in its operational activities.