Respuesta :
The required reserve ratio is used by federal reserve to control money supply in the economy. So, the correct answer is (d)
The total amount of money and other liquid assets in an economy on the measurement date is known as the money supply. Both cash and deposits which can be accessed virtually as readily as cash were generally comprised of the money supply.
By establishing reserve holding limits on banks, dictating how and where to grant credit, or handling other money problems, banking institutions have an influence on the amount of money that is available to all people. The amount of funds that a financial institution must keep in reserve to an amount of cash it has on account is known as the required reserve ratio.
Generally, by lowering or increasing the required reserve ratio the federal reserve control the money supply in the economy.
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