elsutherland2004
Answered

Looking for trustworthy answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Connect with a community of experts ready to help you find solutions to your questions quickly and accurately. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

Which situation best describes how a change in the reserve requirements affects the economy? (1 point)
If the reserve requirements tightened, more funds are in reserves and banks do not have as much to lend, leading
to an increase in interest rates for customers and a decrease in economic growth.
If the reserve requirements tightened, less funds are in reserves and banks do not have as much funds to lend,
leading to a decrease in interest rates for customers and an increase in economic growth.
If the reserve requirements loosened, less funds are in reserves and banks would have more to lend, leading to
an increase in interest rates and an increase in economic growth.
If the reserve requirements loosened, more funds are in reserves and banks do not have as much to lend, leading
to an increase in interest rates and a decrease in economic growth.

Sagot :

ashleewelker15oxqevf

If the reserve requirements tightened, more funds are in reserves and banks do not have as much to lend, leading to an increase in interest rates for customers and a decrease in economic growth.

Hope this helps! :)

horselover4ever1234

Feds System Tools and Monetary Policy Quick Check (answers only)

1. If the reserve requirements tightened, more funds are in reserves and banks do not have as much to lend, leading to an increase in interest rates for customers and a decrease in economic growth.

2. Repos result in a temporary increase in a bank's reserves and maintain liquidity in the banking system. Banks can sell reverse repos back to the Federal Reserve at a higher price in a short period of time.

3. Reducing the reserve requirements to increase the amount available for banks to lend.

4. Banks have more funds to issue loans to consumers and businesses, which increases consumer and business spending, employment, and economic growth.

5. monetary policy

This will get you 100% in honors economics with connexus!

Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.