A decrease in reserve requirements could lead to an

A decrease in reserve requirements could lead to an O increase in bank lending O increase in the money supply O increase in the discount rate O increase in bank lending and an increase in the money supply. O increase in bank lending and an increase in the discount rate. a decline in book demands can lead to an O escalation in lender financing O escalation in the funds offer O escalation in the rebate price O escalation in lender financing and a rise in the funds offer. O escalation in lender financing and a rise in the rebate price.

Response is Solution 4
Whenever Federal Reserve reduces the book proportion through an
expansionary financial plan, commercial financial institutions element money
readily available decreases. The extra book introduced might be accustomed
boost the few financial loans they hand out to customers and
organizations. This boosts the cash offer throughout the economy.
Lower Fed book necessity reduces the rebate
price.

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