Question: Pls help me find the correct answer/ explain ABC Bank always operated with a reserve ratio of 25%. It has now been taken over by

 Pls help me find the correct answer/ explain ABC Bank alwaysoperated with a reserve ratio of 25%. It has now been takenover by XYZ Bank which operates with a reserve ratio of 12.5%.Assuming that ABC Bank adopts the business practices of its new owner.

Pls help me find the correct answer/ explain

what will be the effect on money SUpply in the country inwhich ABC Bank operates? 0 Money supply will increase because ABC Bankwill increase its loans. Q The effect on money supply cannot bedetermined from the information given. Q Money supply will decrease because the

ABC Bank always operated with a reserve ratio of 25%. It has now been taken over by XYZ Bank which operates with a reserve ratio of 12.5%. Assuming that ABC Bank adopts the business practices of its new owner. what will be the effect on money SUpply in the country in which ABC Bank operates? 0 Money supply will increase because ABC Bank will increase its loans. Q The effect on money supply cannot be determined from the information given. Q Money supply will decrease because the loans will have to be repaid. Q Money supply will be unchanged When the BSP buys or sells government securities, it is using the tool of monetary policy known as: (i) reserve requirements Q none of the listed answer is correct Q the discount rate Q moral suasion Q bank suoervision and regulation The Bangko Sentral ng Pilipinas: @i has bank sUpervision and regulatory responsibilities. Q originated with a public offering of stock to the public. Q is a private corporation Q was established in the 19205. Q operates the Manila Stock Exchange. Q none of the listed answer is correct When BSP wants to increase the quantity of money in the economy will: Q decrease credit availability @i buy bonds in open market operations. Q reverse quantitative easing Q sell bonds in open market operations Q none of the listed answer is correct Q raise the discount rate

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