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03-07-2021
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The Fed can manipulate the reserve ratio in order to influence the ability of commercial banks to do what

Respuesta :

ewomazinoade ewomazinoade

06-07-2021

Answer:

loan out money

Explanation:

Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. The lower the ratio, the higher the increase in money supply

If the required reserve ratio is 10% and $100 is deposited, reserves would be $10 and $90 would be lent out

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