Multiple Choice
An increase in the currency drain ratio
A) decreases the quantity of money.
B) decreases the monetary base.
C) increases banks' reserves.
D) increases banks' deposits.
E) has no effect on the amount of the monetary base or the quantity of money.
Correct Answer:
Verified
Correct Answer:
Verified
Q15: List the Fed's main policy tools and
Q305: In order for any given commodity to
Q306: A-1 bank initially has no excess reserves.If
Q307: If the Fed buys government securities,then<br>A)the quantity
Q308: Banks earn a profit by<br>A)keeping as many
Q311: If we look at the components of
Q312: An increase in the currency drain ratio<br>A)increases
Q313: The U.S.dollar is called<br>A)fiat money because the
Q314: Checks are not money because they<br>A)are just
Q315: Suppose the Fed buys $1 million of