How does increasing the reserve requirement affect the money supply? It decreases the money supply because less money is on

Question

How does increasing the reserve requirement affect the money supply?
It decreases the money supply because less money is on reserve in banks.
It increases the money supply because more money is available for loans.
It increases the money supply because more money is on reserve in banks.
It decreases the money supply because less money is available for loans.

Kunduz · Accepted Answer

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