A Change in the Reserve Requirement Is the Tool Used

question 91

Multiple Choice

A change in the reserve requirement is the tool used least often by the Fed because it:

• A) Does not affect bank reserves.
• B) Can cause abrupt changes in the money supply.
• C) Does not affect the money multiplier.
• D) Has no impact on the lending capacity of the banking system.

---

Definitions:

Sizing

Adjusting or determining the dimensions or proportions of an object or layout in design and software applications.

Warmness

A term not commonly used in strict technical contexts, often referring to the level of heat or the perception of emotional warmth.

Ungroup

Refers to separating objects, shapes, or data points that were previously combined or grouped together in a software application.

Component Objects

Individual parts or elements that can be combined with others to construct a more complex system or object.