Which of the following changes would clearly increase the supply of money in the banking system?
A) an increase in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves
B) an increase in the percentage of money people want to hold as currency and an increase in the fraction of deposits banks want to hold as excess reserves
C) a decrease in the percentage of money people want to hold as currency and a decrease in the fraction of deposits banks want to hold as excess reserves
D) a decrease in the percentage of money people want to hold as currency and an increase in the fraction of deposits banks want to hold as excess reserves
Correct Answer:
Verified
Q178: If a bank gets a $100,000 new
Q179: Other things being equal, if you took
Q180: Federal funds market rate is:
A)the rate at
Q181: The size of the effect of a
Q182: Suppose you found $3,000 hidden in your
Q184: The size of the effect of a
Q185: If banks faced a 100 percent reserve
Q186: If banks faced a 100 percent reserve
Q187: Which of the following changes would clearly
Q188: The money supply would tend to fall
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents