Question

25 points!!!!

6. The money multiplier formula shows the effects of (1 point)
a cash deposit into the banking system on the money supply.
low interest rates on creditors over a long period.
Federal Reserve discount rate reductions on the bond markets.
a required reserve ratio on excess reserves.
7. How would an increase in the required reserve ratio affect borrowers? (1 point)
It would force banks to lower their interest rates, which would benefit many borrowers.
It would force banks to raise their monthly charges, which would hurt many borrowers.
It would force banks to recall a significant number of loans, which would hurt many borrowers.
It would prompt banks to lend more money, which would benefit many borrowers.

Answer 1

Answer: 6) a cash deposit into the banking system on money supply

7) it would force banks to recall a significant number of loans, which would hurt many borrowers.

Hope this helps!! Good luck!