If the Fed reduced reserve requirements,
A)banks would have less money to lend businesses and consumers
B)economic growth would decline
C)inflation would decline
D)banks would have more money to lend out

Question

Quizplus · Accepted Answer

Reducing reserve requirements allows banks to hold less money in reserve and thus have more money available to lend out to businesses and consumers, potentially stimulating economic activity.

If the Fed Reduced Reserve Requirements