Households can only be considered as suppliers of funds in the financial market. * a. True b. False High reserve requirement encourages bank to lend money by forcing them to hold more cash. * a. True b. False As the interest rate increases, the opportunity cost of holding money decreases as well. * a. True b. False

Households can only be considered as suppliers of funds in the financial market. * a. True b. False High reserve requirement encourages bank to lend money by forcing them to hold more cash. * a. True b. False As the interest rate increases, the opportunity cost of holding money decreases as well. * a. True b. False

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter24: Money And The Federal Reserve System

Section: Chapter Questions

Problem 7SQ

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