Lowering the reserve ratio

Assignment Help Business Economics

Reference no: EM131112574

Lowering the reserve ratio:

A) Increases the total reserves in the banking system.

B) Also reduces the discount rate.

C) Turns required reserves into excess reserves .

D) Reduces the amount of excess reserves the banks keep.

Reference no: EM131112574

Questions Cloud

Which marginal revenue equals marginal cost : Explain why selling output at a price below that at which marginal revenue equals marginal cost (MR = MC) might serve to deter entry of a potential competitor.

Interest paid on reserves held at the fed : Interest paid on reserves held at the Fed

A decrease in the reserve ratio increases : A decrease in the reserve ratio increases the:

Fed raises discount rate for third time this year : A newspaper headline reads "Fed Raises Discount Rate for Third Time This Year." This headline indicates that the Federal Reserve is most likely trying to :

Lowering the reserve ratio : Lowering the reserve ratio:

What is the public domain : Are there creative works that can be shared or otherwise used by anyone without permission and without the payment of royalties? What is “the public domain”? Why is this significant to musicians, conductors, publishers, and others?

What is market power and define market power : What is market power? Define market power, name a few sources of market power, and explain why market power is always a source of market inefficiency.

Statements are positive and which are normative : Which of the following statements are positive and which are normative?

What is the balance of payments : Tom is stuck with his friends on an island that uses coconuts for currency, but they recently discovered Wilson’s Island nearby. Tom’s Island agrees to make only one transaction with Wilson’s Island: It sells a fishing boat to Wilson’s for 15 coconut..

User Account

All Pages