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CFA Level 1 Question of the Week - Economics
If the central bank reduces the reserve requirements and increased net redemptions (purchases) of Treasury securities, then:
CFA Level 1 Question of the Week - Economics 14 votes
A. Banks would decrease acceptance of deposits, and the money supply would decrease.
B. Banks would increase lending activities, and the money supply would increase.
C. Interest rates would rise, and bank lending activities would decrease.