In the context of monetary policy, which of the following is a result of a decrease in the reserve requirement?
A) Interest rates begin to increase.
B) Banks make less number of loans.
C) Banks need to hold more funds.
D) The availability of credit increases.

Question

Quizplus · Accepted Answer

A decrease in the reserve requirement allows banks to hold less money in reserve, thereby increasing the amount of funds available for lending, which increases the availability of credit.

In the Context of Monetary Policy, Which of the Following