Which of the following best describes the purpose of raising and lowering the

required reserve ratio?

O

A. To make sure that government spending does not result in either a

surplus or deficit.

O

B. To regulate the activity of private banks to assure an equitable

distribution of wealth.

O

C. To manage the economy by increasing or decreasing the amount

of loans being made.

D. To stimulate economic growth by making it less expensive for

producers to get loans.