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

Question

Quizplus · Accepted Answer

An increase in currency held outside the banks is referred to as a currency drain. This occurs when individuals choose to hold more of their money in physical form (cash) rather than depositing it into bank accounts, leading to a reduction in the reserves available to banks for lending.

An Increase in Currency Held Outside the Banks Is