What happens if the Federal Reserve decreases the level of reserves in the banking system?
A) People will choose to hold traveler's checks rather than currency.
B) People will choose to hold currency rather than traveler's checks.
C) The money supply will increase.
D) The money supply will decrease.
Correct Answer:
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Q45: If banks choose to hold more than
Q46: New reserves are put into the banking
Q47: The liquidity approach to measuring the money
Q48: What is the effect of the Federal
Q49: Who are the members of the Federal
Q51: If banks hold excess reserves,
A) they are
Q52: When banks find themselves with excess reserves,
Q53: When you cash a check,
A) you increase
Q54: When you withdraw cash from a savings
Q55: When you deposit traveler's checks into a
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