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Suppose New Reserves Introduced into the Banking System Will Be

Question 120

Multiple Choice

Suppose new reserves introduced into the banking system will be converted.Which of the following conversions will halt money expansion?  


A)  if the new reserves are converted to excess reserves 
B)  if the new reserves are converted to securities 
C)  if the new reserves are converted to deposits 
D)  if the new reserves are converted to desired reserves

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