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Author Question: Assume that banks become less conservative in their lending policies and start holding no excess ... (Read 123 times)

Deast7027

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Question 1

If the money multiplier is 4, the required reserve ratio is


◦ 4%.
◦ 20%.
◦ 25%.
◦ 50%.

Question 2

Assume that banks become less conservative in their lending policies and start holding no excess reserves. Compared to a situation in which banks are holding excess reserves, the size of the money supply will be


◦ zero.
◦ larger.
◦ the same.
◦ smaller.


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Marked as best answer by Deast7027 on Apr 19, 2019

jaykayy05

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Deast7027

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Reply 2 on: Apr 19, 2019
Excellent


strudel15

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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