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Economics
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If the Fed increases the reserve requirement,

a. banks will issue more loans.

b. consumers will save more.

c. banks will issue fewer loans.

d. consumers will save less

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Related questions

Which of the following actions that fed uses to increase the supply of money.

A. Lowering the reserve requirements for banks and raising the discount rate that banks pay on short-term loans from the Federal Reserve Bank to increase supply.

B. Raising the bank reserve requirement and raising the discount rate that banks pay on short-term loans from the Federal Reserve Bank to increase supply.

C. Lowering the reserve requirements for banks and lowering the discount rate that banks pay on short-term loans from the Federal Reserve Bank to increase supply.

D. Raising the bank reserve requirement and lowering the discount rate that banks pay on short-term loans from the Federal Reserve Bank to increase supply. 

When the federal funds rate increases, banks make:

A. fewer loans to ensure that they do not run low on reserves.

B. fewer loans so that they can worry less about borrowing reserves.

C. more loans to ensure that they do not run low on reserves.

D. more loans so that they can worry less about borrowing reserves.

When the Fed sells government securities, it

a. lowers the cost of borrowing from the Fed, encouraging banks to make loans to the general public

b. raises the cost of borrowing from the Fed, discouraging banks from making loans to the general public

c. increases the amount of excess reserves that banks hold, encouraging them to make loans to the general public

d. increases the amount of excess reserves that banks hold, discouraging them from making loans to the general public.

e. decreases the amount of excess reserves that banks hold, discouraging them from making loans to the general public

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