Multiple Choice
During a bank run,depositors decide to hold more currency relative to deposits and banks decide to hold more excess reserves relative to deposits.
A) Both the decision to hold relatively more currency and the decision to hold relatively more excess reserves would make the money supply increase.
B) Both the decision to hold relatively more currency and the decision to hold relatively more excess reserves would make the money supply decrease.
C) The decision to hold relatively more currency would make the money supply increase.The decision to hold relatively more excess reserves would make the money supply decrease.
D) The decision to hold relatively more currency would make the money supply increase.The decision to hold relatively more excess reserves would make the money supply decrease
Correct Answer:

Verified
Correct Answer:
Verified
Q13: Which of the following is correct?<br>A)A bank's
Q14: An increase in the money supply might
Q15: To increase the money supply,the Fed could<br>A)sell
Q16: Suppose banks decide to hold more excess
Q17: When the Fed conducts open-market purchases,<br>A)it buys
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