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Question 1
10 points
An increase in the portion of reservable liabilities that commercial banks must hold onto, rather than lend out in the form of loans, will have the immediate effect of......
a. increasing catith in circulation.
b. decreasing the liabilities of commercial banks.
c. increasing the overall money supply.
d. decreasing the money multiplier.
e. increasing the bank multiplier.
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Question 1 of 4

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Remaining Time: 59 minutes, 19 seconds.

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Question
Question 1
10 points
An increase in the portion of reservable liabilities that commercial banks must hold onto, rather than lend out in the form of loans, will have the immediate effect of......
a. increasing catith in circulation.
b. decreasing the liabilities of commercial banks.
c. increasing the overall money supply.
d. decreasing the money multiplier.
e. increasing the bank multiplier.
Moving to the next question prevents changes to this answer.
Question 1 of 4

Accepted Answer

Hi Fanwei! It's great to hear that you are currently in college as a Freshman or Sophomore. Let's talk about the question you have regarding an increase in the portion of reservable liabilities that commercial banks must hold onto. This change would have an immediate effect on the overall money supply. Do you have any thoughts on how this might impact the economy? Let's discuss further!

Sia