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4 June, 21:37

Which accurately describes how raising the required reserve ratio reduces the money supply?

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  1. 4 June, 22:00
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    I had to look for the options and here is my answer:

    The statement that best describes as to how increasing the required reserve ratio decreases the supply of money is this: Based on the actual options given, when the required reserve ratio is raised, banks must loan out a smaller portion of their reserves, resulting in fewer loans.
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