Multiple Choice
Bank runs
A) will affect neither the money supply nor the money multiplier.
B) increase the money supply.
C) can be neither prevented nor mitigated by the Federal Reserve.
D) are a problem because banks only hold a fraction of deposits as reserves.
Correct Answer:
Verified
Correct Answer:
Verified
Q19: The federal funds rate is the interest
Q20: During wars the public tends to hold
Q21: If the Federal Reserve increases the interest
Q22: The money supply decreases if the Fed<br>A)sells
Q23: When the Fed conducts open-market purchases,<br>A)banks buy
Q25: To decrease the money supply,the Fed can<br>A)buy
Q26: Which of the following can the Fed
Q27: When there is a reserve requirement,banks<br>A)must hold
Q28: At one time,people in a certain country
Q29: Suppose banks decide to hold fewer excess