3 years ago

If the Federal Reserve decreases the rate on required and excess reserves, what would be the ideal outcome?

2 answers:

6 0

If the Federal Reserve lowers the reserve ratio, the ideal outcome would be that commercial banks and other financial institutions would grant more loans to consumers and businesses, since they would not have to hold as much cash in reserves, and that, as a result, money supply and economic growth would increase.

nikdorinn [45]3 years ago

6 0

Answer:

Unemployment rate decreased

Explanation:

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