Multiple Choice
The money supply decreases if
A) households decide to hold relatively more currency and relatively fewer deposits and banks decide to hold relatively more excess reserves and make fewer loans.
B) households decide to hold relatively more currency and relatively fewer deposits and banks decide to hold relatively fewer excess reserves and make more loans.
C) households decide to hold relatively less currency and relatively more deposits and banks decide to hold relatively more excess reserves and make fewer loans.
D) households decide to hold relatively less currency and relatively more deposits and banks decide to hold relatively less excess reserves and make more loans.
Correct Answer:

Verified
Correct Answer:
Verified
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