Business, 02.12.2019 23:31, domenicaBeBe2007

Which of the following statements is false?

a. when banks' required reserves increase, the money supply increases

b. the bank system is called a fractional reserve system because only a small portion of deposits are actually kept on reserve

c. banks are legally obligated to hold a minimum of reserves known as required reserves

d. when banks make loans they increase the money supply

Answers: 3

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Do you know the correct answer?

Which of the following statements is false?

a. when banks' required reserves increase,...