When reserve requirements are increased, the: a. excess reserves ...

[jlmhmf]

When reserve requirements are increased, the:
 a. excess reserves of commercial banks will decrease.
  b. excess reserves of commercial banks will increase.
  c. U.S. Treasury will have to borrow additional funds.
  d. money supply will rise.

Question 2

Which of the following would cause the money supply in the United States to decrease?
 a. An increase in reserve requirements
  b. A decrease in the discount rate
  c. A purchase of U.S. government bonds by the Federal Reserve
  d. An increase in the world supply of gold

[ansleighelindsey]

Answer to Question 1

a

Answer to Question 2

a