18-72 Which of the Following Is an Outcome of an Increase

question 95

Multiple Choice

18-72 Which of the following is an outcome of an increase in the reserve requirement ratio?

• A)DIs may hold fewer reserves against their transaction accounts.
• B)DIs are able to lend out a greater percentage of their deposits.
• C)Increased credit availability in the economy.
• D)DIs are only able to lend a smaller percentage of their deposits than before.
• E)A multiplier effect on the supply of DI deposits and thus the money supply.

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