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When the Federal Reserve lowers reserve requirements, what is it attempting to do?
Suggested Answer: A
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ease credit. A lower reserve requirement permits member banks to have more money available for lending, thus ease credit.
12 comments · newest first
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Tonette
12 months ago
But isn’t it risky with inflation concerns?
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Keneth
1 year ago
It’s a classic strategy to boost the economy.
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Lorean
1 year ago
Wait, are we sure this is the right move?
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Carolynn
1 year ago
Totally agree, it’s all about making loans easier!
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Cornell
1 year ago
Lowering reserve requirements definitely eases credit.
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Candida
1 year ago
I definitely recall that lowering reserve requirements increases the money supply, which should ease credit, so I’m leaning towards option A.
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Sylvia
1 year ago
I'm a bit confused; I thought lowering reserve requirements might also relate to countering inflation somehow, but that seems contradictory.
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Annmarie
1 year ago
I remember a practice question about the Fed's tools, and I think easing credit was one of the main reasons for lowering reserve requirements.
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Kanisha
1 year ago
I think lowering reserve requirements is meant to ease credit, but I'm not entirely sure if that's the only goal.
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Shannon
1 year ago
I'm a bit confused by this question. The image doesn't look like a typical SMS code or an app development tool, so I'm leaning towards either QR code or barcode creator. I'll have to carefully examine the details to make the best choice.
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Tayna
1 year ago
Okay, let's see. The question is asking about how some people viewed the idea of flying aircraft. I'm leaning towards "exciting" since that seems like the most positive and forward-looking option, but I'll double-check the other choices just to be sure.
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Tresa
1 year ago
Hmm, I'm a bit unsure about this one. I know models are important for data, but I'm not totally confident that's the right answer. I'll have to think it through a bit more.