The money supply is:
A) the amount of money available in the economy.
B) the amount of money that banks keep on hand.
C) the amount of money that banks keep on hand beyond the reserve requirement.
D) None of these is true.
Correct Answer:
Verified
Q43: The definition of M2 includes:
A) cash and
Q44: When banks hold excess reserves:
A)the money multiplier
Q45: Hard money:
A)is the least narrow definition of
Q46: A bank run is:
A) the situation that
Q48: The bigger the money multiplier is:
A)the smaller
Q48: If the reserve ratio is 5 percent,
Q51: The Fed classifies different types of money
Q52: The definition of M1 includes:
A) cash and
Q54: If the reserve ratio is 20 percent,
Q59: The narrowest definition of money:
A) includes the
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