Decreasing the Required Reserve Ratio Is

question 59

Multiple Choice

Decreasing the required reserve ratio is

• A)a contractionary policy because it lowers the amount of total reserves in the banking system
• B)a contractionary policy because it lowers the amount of excess reserves in the banking system
• C)an expansionary policy because it raises the amount of required reserves in the banking system
• D)an expansionary policy because it raises the amount of total reserves in the banking system
• E)an expansionary policy because it raises the amount of excess reserves in the banking system

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