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ratelena [41]
3 years ago
12

If the Federal Reserve wants to expand reserves in the banking system, it will A. sell government securitiesB. raise reserve req

uirements. C. purchase government securities D. raise the discount rate
Social Studies
1 answer:
Anestetic [448]3 years ago
5 0

Answer:

Option B

Explanation:

The best is to raise reserve requirement.

The capacity of the current reserve is based on its requirements. in other to expand, or improve the capacity, is to raise the requirement of the reserve.

It is just like having a pocket that can receive 100, if you want to increase the capacity of the pocket, you will need to adjust the pocket size, this is raising the pocket requirement for you to receive 200 in same pocket.

From my analogy, option B is the best answer to the question.

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Explanation:

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they also take into consideration the possibility that Great Britain could win, which could have led the Empire to massive counteraction in order to prevent another Revolution.

Also many loyalists were Rich People so before they could have a lot of loss from this Revolution since their source of income was based on trade with Great Britain  

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