A decrease in the reserves of commercial banks could be the result of
A. an increase in the velocity of circulation.
B. the sale of government securities by the Federal Reserve.
C. a decrease in the velocity of circulation.
D. an increase in the required reserve ratio.
Answer:B
A decrease in the reserves of commercial banks could be the result of
A. an increase in the velocity of circulation. B. the sale of government securities by the Federal Reserve. C. a decrease in the velocity of circulation. D. an increase in the required reserve ratio.