Author Question: When reserve requirements are increased, the: a. excess reserves of commercial banks will decrease. ... (Read 81 times)

jlmhmf

  • Hero Member
  • *****
  • Posts: 552
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

  • Sr. Member
  • ****
  • Posts: 364
Answer to Question 1

a

Answer to Question 2

a



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

For a complete list of videos, visit our video library