When the Required Reserve Ratio Is Decreased

question 34

Multiple Choice

When the required reserve ratio is decreased:

• A)​the excess reserves of member banks are reduced, but the money multiplier is not affected.
• B)​the excess reserves of member banks are reduced, and the money multiplier is increased.
• C)​the excess reserves of member banks are increased, but the money multiplier is not affected.
• D)​the excess reserves of member banks are increased, and the money multiplier is increased.

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