Which of the following reduces the money multiplier? O banks loan all their excess reserves O the Fed raises the required reserve ratio O the Fed sells U.S. government securities O bank customers do not hold any of the loan proceeds as currency outside the banking system O banks impose a currency drain on bank customers

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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48
Which of the following reduces the money
multiplier?
banks loan all their excess reserves
O the Fed raises the required reserve ratio
O the Fed sells U.S. government securities
O bank customers do not hold any of the loan
proceeds as currency outside the banking
system
banks impose a currency drain on bank
customers
Transcribed Image Text:Which of the following reduces the money multiplier? banks loan all their excess reserves O the Fed raises the required reserve ratio O the Fed sells U.S. government securities O bank customers do not hold any of the loan proceeds as currency outside the banking system banks impose a currency drain on bank customers
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