An increase in both the legal reserve ratio and discount rate has the effect of?
Question
An increase in both the legal reserve ratio and discount rate has the effect of?Options
A)
increasing the quantity of money in circulation
B)
decreasing the quantity of money in circulation
C)
increasing the value of money
D)
decreasing the value of money
Related Lesson: Changing the Discount Rate | Monetary Policy and Bank Regulation
The correct answer is B.
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