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

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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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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