Multiple Choice
Which of the following combinations would have an indeterminate effect on the size of the money supply?
A) a decrease in the percentage of money people want to hold as currency, and an increase in the fraction of deposits banks want to hold as reserves
B) a decrease in the percentage of money people want to hold as currency, and no change in the fraction of deposits banks want to hold as reserves
C) an increase in the percentage of money people want to hold as currency, and an increase in the fraction of deposits banks want to hold as reserves
D) a decrease in the percentage of money people want to hold as currency, and a decrease in the fraction of deposits banks want to hold as reserves
Correct Answer:
Verified
Correct Answer:
Verified
Q127: What would a desired reserve ratio of
Q128: If a bank gets a $100 000
Q129: Money makes it easier to borrow and
Q130: If many people were to suddenly deposit
Q131: If a bank has a reserve ratio
Q133: Why does fiat money have value?<br>A)because it
Q134: Why is using money as a store
Q135: The money supply is significantly larger than
Q136: If the National Bank of Uptown desires
Q137: In defining the money supply as M2,on