What happens when a bank is required to hold more money in reserve?

Question

asked Dec 5, 2020 115k views

2 Answers

Ticex · Answer 1 · 2020-12-11T11:34:39+0000

Answer:

When the Federal Reserve decreases the reserve ratio, it lowers the amount of cash that banks are required to hold in reserves, allowing them to make more loans to consumers and businesses. This increases the nation's money supply and expands the economy

Step-by-step explanation:

What happens when a bank is required to hold more money in reserve?

Please log in or register to add a comment.

Please log in or register to answer this question.

2 Answers

Please log in or register to add a comment.

Please log in or register to add a comment.

No related questions found

Categories

Other Questions