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ruslelena [56]
3 years ago
10

Why does the fed rarely increase reserve requirements ?

Social Studies
2 answers:
scoundrel [369]3 years ago
6 0

The correct answer is B) it can be disruptive to the whole banking system.

The Fed rarely increases reserve requirements because it can be disruptive to the whole banking system.

In financial terms in the United States banking system, the banks must have a reserve of funds every time it closes its operation at night. This reserve of money is a percentage of deposits that were made during the day. This is the purpose of the reserve requirement. It is the Federal Reserve that controls and oversees this requirement for its members

Deffense [45]3 years ago
4 0

B. It can be disruptive to the whole banking system

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