Question and answer
If the Federal Reserve increases the required reserves, financial institutions will likely lend out
If the Federal Reserve increases reserves, a single bank can make loans up to the amount of its excess reserves, creating an equal amount of deposits. The banking system, however, can create a multiple expansion of deposits. [ As each bank lends and creates a deposit, it loses reserves to other banks, which use them to increase their loans and thus create new deposits, until all excess reserves
are used up. .............. ]
Expert answered|sujaysen|Points 1874|
Question
Asked 4/21/2012 1:58:46 PM
0 Answers/Comments
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
21,548,691 questions answered
Popular Conversations
write the number in decimal form:fourteenand eighty-fourhundredths.
Weegy: Fourteen and eighty-four hundredths is 14.84
7/2/2015 6:07:53 AM| 2 Answers
round the decimal number to the nearest tenth:285.429
Weegy: 285.429 is equal to 290.
7/2/2015 6:19:24 AM| 2 Answers
_____________ was the first African American to receive the Nobel ...
Weegy: Ralph Bunch was the first African American to receive the Nobel Peace Prize. He won this for his peacemaking ...
7/2/2015 8:14:33 AM| 2 Answers
The sun's photosphere
Weegy: A. corona User: can only be seen during an eclipse
7/2/2015 8:31:49 AM| 2 Answers
peta
7/2/2015 11:32:27 AM| 2 Answers
Weegy Stuff
S
1
L
P
1
1
Points 85 [Total 1491]| Ratings 1| Comments 75| Invitations 0|Offline
S
1
Points 45 [Total 556]| Ratings 0| Comments 45| Invitations 0|Offline
S
1
L
L
Points 23 [Total 8403]| Ratings 0| Comments 23| Invitations 0|Online
S
P
C
L
P
L
1
P
P
1
P
1
P
Points 13 [Total 9542]| Ratings 0| Comments 13| Invitations 0|Offline
S
L
P
P
Points 4 [Total 3563]| Ratings 0| Comments 4| Invitations 0|Offline
S
Points 4 [Total 4]| Ratings 0| Comments 4| Invitations 0|Offline
S
R
Points 3 [Total 205]| Ratings 0| Comments 3| Invitations 0|Offline
S
Points 1 [Total 1]| Ratings 0| Comments 1| Invitations 0|Offline
S
Points 1 [Total 44]| Ratings 0| Comments 1| Invitations 0|Offline
Points 0 [Total 0]| Ratings 0| Comments 0| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2015 Purple Inc.