AP Macroeconomics · Past multiple choice · Question 7, Fall 2020 edition · Four-function calculator

Letting banks lend more from the same reserves

A central bank wants the banking system to be able to create more loans from a given amount of reserves. Choose the action that raises that limit.

1 Read the question

The question is College Board's: sample question 7 in AP Macroeconomics Course and Exam Description, Effective Fall 2020. It starts on page 142 of the PDF. College Board no longer posts this edition, so it opens from the copy the Internet Archive saved on November 17, 2020. A four-function calculator is allowed, as on the exam.

Open Question 7 (PDF, page 142)

2 Pick your answer

Question and answer key: College Board, from the Internet Archive. The title and summary are ours.