Based on the information in the table, we can conclude that, in 1932, each of the following events occurred except:
A)The public increased the amount of currency it held.
B)Banks were keeping more of their deposits in reserves, and making fewer loans.
C)The Federal Reserve conducted open-market sales of U.S. government bonds.
D)The Federal Reserve injected reserves into the banking system.

Question

Based on the information in the table, we can conclude that, in 1932, each of the following events occurred except: 
A)The public increased the amount of currency it held. 
B)Banks were keeping more of their deposits in reserves, and making fewer loans. 
C)The Federal Reserve conducted open-market sales of U.S. government bonds. 
D)The Federal Reserve injected reserves into the banking system.

Quizplus · Accepted Answer

We see the public held more currency and the desired reserve-deposit ratio increased, meaning that banks made fewer loans. Additionally, the Federal Reserve injected reserves into the banking system. Although the money supply decreased, there is no evidence the Fed made open-market sales of U.S. government bonds.

Based on the Information in the Table, We Can Conclude