What Would Be the Result If the Target Reserve Ratio

question 7

Multiple Choice

What would be the result if the target reserve ratio was lowered?

• A)The actual reserves of banks would increase.
• B)The size of the money multiplier would increase.
• C)Banks would be forced to call in loans.
• D)The actual reserves of banks would decrease.
• E)The size of the money multiplier would decrease.

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Definitions:

3-Year-Old

A reference to children around the age of three, often used in developmental psychology to discuss milestones and behavioral patterns.

Syntax

The set of rules, principles, and processes that govern the structure of sentences in a given language, especially in terms of word order and punctuation.

Pivot Grammar

A simplified grammatical structure often observed in early child speech, allowing for the construction of sentences around a key pivotal word.