The Size of the Effect of a Given Deposit of Cash

Multiple Choice

The size of the effect of a given deposit of cash into a demand deposit account on the money supply is smaller:

A) ​the greater the fraction of money people want to hold as currency and the greater the fraction of deposits banks want to hold as excess reserves.
B) ​the greater the fraction of money people want to hold as currency and the smaller the fraction of deposits banks want to hold as excess reserves.
C) ​the smaller the fraction of money people want to hold as currency and the greater the fraction of deposits banks want to hold as excess reserves.
D) ​the smaller the fraction of money people want to hold as currency and the smaller the fraction of deposits banks want to hold as excess reserves.