Question
he Central Bank of the Grand Republic of Cornucopia announced that it will decrease the reserve requirements for banks. Commercial banks are required to keep
he Central Bank of the Grand Republic of Cornucopia announced that it will decrease the reserve requirements for banks. Commercial banks are required to keep a certain percentage of their customers' deposit in reserves, which means that these reserves cannot be loaned out. If the asset market approach's explanation to currency changes is correct, then a decrease in reserve requirement will _______ the money supply, causing the interest rates to _______, and the value of its currency, Manna, to possibly _________.
increase: fall; fall | |
decrease: rise; rise | |
increase: fall; rise | |
increase; rise; rise |
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