Which of the Following Could Cause the Money Supply to Decrease

question 32

Multiple Choice

Which of the following could cause the money supply to decrease?

• A)People and institutions borrow more.
• B)The economy emerges from a recession into rapid growth.
• C)The society moves to a cashless society.
• D)Banks become more conservative in making loans.

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Definitions:

Financial Statement

Documents that provide an overview of a company's financial condition in both short and long term, including balance sheets, income statements, and statements of cash flows.

Parenthetical Remark

An explanatory or clarifying comment inserted into the text of financial statements or reports, often provided within parentheses to supplement the main information.

Derivative Financial Instruments

Financial contracts whose value is derived from the price movements of an underlying asset, such as stocks, bonds, commodities, or currencies.

Fair Value

An estimate of the price at which an asset or liability could be exchanged between willing participants in an arm's length transaction.