Answer: The correct answer is choice b.
Explanation: The primary purpose of the legal reserve requirement is to provide a means by which the monetary authorities can influence the lending ability of commercial banks. Basically, it is the Federal Reserve’s way of controlling the money supply.
The primary purpose of the legal reserve requirement is to provide a means by which the authorities can influence the lending ability of commercial banks.
Regulation D, enacted by the Federal Reserve, requires depository institutions to maintain sufficient cash reserves to handle immediate withdrawal requests from their net transaction accounts.
Reserve requirements are the term used to define these monetary reserves. The Reserve Requirement of the Federal Reserve is critical for the economy's stability as well as the economic safety of employees, families, businesses, and financial institutions.
Learn more about reserve requirements, here:
https://brainly.com/question/15966594
#SPJ2
