Ask Question
28 March, 05:30

Which of the following best describes the purpose of raising and lowering the

required reserve ratio?

+4
Answers (2)
  1. 28 March, 06:37
    0
    Answer: To manage the economy by increasing or decreasing the amount of loans being made.

    Explanation:

    next time put the choices
  2. 28 March, 08:20
    0
    It is used by Fed to manage the economy by increasing or decreasing the amount of loans being made

    Explanation:

    The Fed decides on required reserve ratio for the banks and other financial institutions; t can lower or raise it. Reserve ratio is the portion of all the money that bank are required to sets aside and hold onto; this means they are not allowed to lend that out to borrowers. This is a technique that is used to control the supply of money in the economy. By decreasing this ratio, banks will have more money to lend out and vice versa.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which of the following best describes the purpose of raising and lowering the required reserve ratio? ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers