asked 188k views
4 votes
If commercial banks are maintaining a 4 percent reserve/deposit ratio and the fed raises the required reserve ratio to 6 percent, then banks will ______ their loans based on current deposits, and the money supply will _____.

asked
User Shivas
by
8.1k points

1 Answer

7 votes
the correct answer is decrease & decreases
answered
User Anushka
by
7.7k points
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