Because of Widespread Risk Aversion in the Financial Sector in Recent

Multiple Choice

Because of widespread risk aversion in the financial sector in recent years, commercial banks in the United States have tended to hold __________ excess reserves than would otherwise have been the case. A result of this bank behavior is that the "money multiplier" in the U.S. economy is __________ than would otherwise have been the case.

A) a larger amount of; smaller
B) a larger amount of; larger
C) a smaller amount of; smaller
D) a smaller amount of; larger