If the Federal Reserve increases the reserve requirement, what effect will this have on the nation's money supply?
a.
Increase the money supply.
c.
Have no effect on the money supply.
b.
Decrease the money supply.
d.
It will double the nation's money supply.

Question

king.void. · Answer

what do you think?

dantefemboy · Answer

Brb very quick.

king.void. · Answer

It's not "A nor D"

anonymous · Answer

think about it there storing equipment somewhere and doing nothing with it  =/

anonymous · Answer

This one is a toughy.

anonymous · Answer

wherever there storing it they hire somebody to build warehouse or storage facility

dmndlife24 · Answer

B. decrease the money supply

dmndlife24 · Answer

Increasing RR=banks keep more money in vault=less
loans available to people

anonymous · Answer

Well @GG777  that would be the US Mint. Where all of Americas gold is held.

anonymous · Answer

Well I would agree with @dmndlife24, but try not to be so direct with your answers. Its against the Code of Conduct on Openstudy. ^~^

dantefemboy · Answer

Lol started the party without me? @fierstar123 @dmndlife24 @King.Void. @GG777

anonymous · Answer

Yes.

dantefemboy · Answer

I can't wait until I hit smart score level of 69. Lol get it? xD