Suppose that there are no excess reserves in the banking system and the current amount of demand deposits is $100,000. If the monetary authorities increase the required reserve ratio from 5% to 10%:

A) the amount of excess reserves in the banking system will fall.
B) the amount of excess reserves in the banking system will remain the same.
C) the money-creating potential of the banking system will decline.
D) the money-creating potential of the banking system will rise.

answer///the stewardship worldview;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.