One Implication of an Increase in the Cash Drain to the Public

question 63

Multiple Choice

One implication of an increase in the cash drain to the public is that the

• A)banking system's ability to create new money following a new deposit is reduced.
• B)desired ratio is reduced.
• C)desired reserve ratio is increased.
• D)amount of new money that can be created from a new source of reserves is increased.
• E)banking system cannot create any additional money following a new deposit.

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