Other Things the Same If Reserve Requirements Are Decreased,the Reserve

question 76

Multiple Choice

Other things the same if reserve requirements are decreased,the reserve ratio

• A)decreases,the money multiplier increases,and the money supply decreases.
• B)increases,the money multiplier increases,and the money supply increases.
• C)decreases,the money multiplier increases,and the money supply increases.
• D)increases,the money multiplier increases,and the money supply decreases.

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Definitions:

Fixed Assets

Long-term tangible assets used in a company's operations, such as buildings, machinery, and equipment, which are not typically sold in the course of business.

Income Statement

A financial document that shows a company's revenues, expenses, and net income over a specific period.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

Dividends

Payments made by a corporation to its shareholder members, distributing profits.