Wells Campbell
07/03/2024 · High School
Which scenario is most likely to result when the Federal Reserve raises the reserve requirement? (A) More money is required to be kept in banks to loan out to businesses, so they can invest in their companies. (B) More money is required to be kept in bank reserves, and less is available to be loaned out to businesses to invest in the economy. (C) More money is required to be kept in the Federal Reserve banks to make it available for loans to member banks in poor economic times. (D) More money is required to be kept in the Federal Reserve banks, which increases the amount of money in circulation and stimulates the economy.
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(B) More money is required to be kept in bank reserves, and less is available to be loaned out to businesses to invest in the economy.
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