Increased excess reserves would be the expected outcome of:
A) a tight money policy.
B) a fiscal money policy.
C) an easy money policy.
D) an anti-inflation money policy.

Question

Quizplus · Accepted Answer

An easy money policy, typically implemented by central banks, involves lowering interest rates and increasing the money supply to stimulate economic growth. One of the outcomes of such a policy is an increase in excess reserves as banks have more funds available beyond what is required.

Increased Excess Reserves Would Be the Expected Outcome Of