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As an analyst for a large bank in the United States, you receive word from the Federal Reserve that the reserve requirement has been lessened
As an analyst for a large bank in the United States, you receive word from the Federal Reserve that the reserve requirement has been lessened from to percent. What is the likely et
your bank's capabilities?
a There is no substantial change unless the requirement moves to percent.
b The bank can charge a lower interest rate on the commercial loans.
c The bank is now supposed to purchase back an additional percent of assets.
d The bank is now able to lend an additional percent of assets.
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