If the Required Reserve Ratio Was Lowered

question 361

Multiple Choice

If the required reserve ratio was lowered

• A)banks would be prompted to reduce their lending.
• B)the size of the monetary multiplier would increase.
• C)the actual reserves of banks would increase.
• D)None of the choices are correct.

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Definitions:

Nuclear Family

A family unit consisting of two parents and their children living together as a single entity.

Biological Parents

The individuals whose genetic material a child inherits; often referred to as birth parents.

Transitions

The process or period of changing from one state or condition to another in life, work, or environment.