Multiple Choice
Suppose that all banks maintain a 100 percent reserve ratio.If an individual deposits $ 3,000 of currency in a bank,
A) the money supply is unaffected.
B) the money supply rises by more than $3,000.
C) the money supply rises by less than $3,000.
D) the money supply decreased by less than $3,000.
Correct Answer:
Verified
Correct Answer:
Verified
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