When the reserve requirement is increased, the excess reserves of member banks are O A) increased and the multiple by which the commercial banking system can lend is increased B) Ở BỊ reduced and the multiple.by which the commercial banking system can lend is increased 2o reduced, but the multiple by which the commercial banking system can lend is unaffected OD) reduced and the multiple by which the commercial banking system can lend is reduced

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter13: Money And The Banking System
Section: Chapter Questions
Problem 18CQ
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When the reserve requirement is increased, the excess reserves of member banks
are
O A) increased and the multiple by which the commercial banking system can lend
is increased
O B) reduced and the multiple. by which the commercial banking system can lend
is increased
C) reduced, but the multiple by which the commercial banking system can lend
is unaffected
D)
reduced and the multiple by which the commercial banking system can lend
is reduced
Transcribed Image Text:When the reserve requirement is increased, the excess reserves of member banks are O A) increased and the multiple by which the commercial banking system can lend is increased O B) reduced and the multiple. by which the commercial banking system can lend is increased C) reduced, but the multiple by which the commercial banking system can lend is unaffected D) reduced and the multiple by which the commercial banking system can lend is reduced
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