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What happens when a bank is required to hold more money in reserve?
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What happens when a bank is required to hold more money in reserve?

User Zochamx
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Answer:

has less money for loans

Step-by-step explanation:

edge

User Walther
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Answer:

When the Federal Reserve decreases the reserve ratio, it lowers the amount of cash that banks are required to hold in reserves, allowing them to make more loans to consumers and businesses. This increases the nation's money supply and expands the economy

Step-by-step explanation:

User Ticex
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