The effect of an increase of required reserves by the Fed is:
A. a decrease in loanable funds of depository institutions
B. a decrease in interest rates
C. usually an increase in vault cash
D. to stimulate activity in the home construction field
Answer:A
The effect of an increase of required reserves by the Fed is:
A. a decrease in loanable funds of depository institutions B. a decrease in interest rates C. usually an increase in vault cash D. to stimulate activity in the home construction field