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Suppose a Goldsmith (Banker)had a Certain Number of Gold Coins

Question 25

Multiple Choice

Suppose a goldsmith (banker) had a certain number of gold coins in his safe and he kept writing more and more goldsmiths' receipts for people who came to him to borrow money.What would be happening to his reserve ratio?


A) It would be rising.
B) It would be falling.
C) It would stay the same.
D) There is not enough information to answer this question.

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