increases the money supply

1) A decrease in ________ increases the money supply since it causes the ________ to rise.A) reserve requirements; monetary baseB) reserve requirements; money multiplierC) margin requirements; monetary baseD) margin requirements; money multiplier2) The Federal Reserve has had the authority to vary reserve requirements since theA) 1920s.B) 1930s.C) 1940s.D) 1950s.3) Since 1980, ________ are subject to reserve requirements.A) only commercial banksB) only the member institutions of the Federal ReserveC) only nationally chartered depository institutionsD) all depository institutions4) Funds held in ________ are subject to reserve requirements.A) all checkable depositsB) all checkable and time depositsC) all checkable, time, and money market fund depositsD) all time deposits5) The policy tool of changing reserve requirements isA) the most widely used.B) the preferred tool from the bank”s perspective.C) no longer used.D) still used, even with its disadvantages.

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