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A Change in Reserve Requirements May Force Depositories to Borrow

Question 49

Multiple Choice

A change in reserve requirements may force depositories to borrow to cover any reserve deficiencies or may make depositories more willing to accelerate the growth of credit. Both of these will affect:


A) The mix of required and excess reserves
B) Interest rates
C) The money multiplier
D) The deposit multiplier
E) All of the above

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