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3 tries left Reduction of the reserve requirements set by the Federal Reserve has the effect of A . freeing up additional money for loans

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Reduction of the reserve requirements set by the Federal Reserve has the effect of
A. freeing up additional money for loans and lower interest rates
B. injecting funds into the U.S. banking system
C. tightening credit as a way of avoiding inflation
D. sending verbal signals about the Fed's policy preferences to economists and market observers
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