An increase in currency held outside the banks is___________ .
A) a currency surplus
B) a currency drain
C) wealth
D) income

Question

Quizplus · Accepted Answer

Currency held outside of banks is referred to as a currency drain, as it reduces the amount of funds available for banks to lend out and stimulate economic activity. It is not considered wealth or income, and a surplus would imply an excess of currency in circulation, which is not the case in this scenario.

An Increase in Currency Held Outside the Banks Is___________