Ask Question
24 February, 13:41

The money supply will grow faster through deposit creation when the required reserve ratio is: a. high and banks hold excess reserves. b. low and banks are able to lend out all of their excess reserves. c. low and banks are unable to loan out all of their excess reserves. d. high and banks cannot find good customers to lend to.

+5
Answers (1)
  1. 24 February, 13:52
    0
    c. low and banks are unable to loan out all of their excess reserves. d

    Explanation:

    Lower required reserve ratio means banks have more money to lend. When banks are able to lend all its excess money, then money supply increases for citizens.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The money supply will grow faster through deposit creation when the required reserve ratio is: a. high and banks hold excess reserves. b. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers