Suppose a student deposits into a downtown bank a $200 cheque that she received from her parents in the suburbs. This transaction alone would
A) decrease the money supply.
B) decrease the money supply by $1000 if the target reserve ratio was 20 percent.
C) increase the money supply by an indeterminate amount.
D) not change the money supply.
E) increase the money supply by $1000 if the target reserve ratio was 20 percent.
Correct Answer:
Verified
Q49: regulating the money supply.
A)2 only
B)3 only
C)1, 2,
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Q51: Gresham's law predicts that
A)good money drives out
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Q53: For a country to be on a
Q55: If the target reserve ratio in the
Q56: Other things being equal, a rise in
Q57: The currency that is in circulation in
Q58: Doug is saving money in order to
Q59: Consider a new deposit of $10 000
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