If the Public Decides to Hold Less Currency and More

question 177

Multiple Choice

If the public decides to hold less currency and more deposits in banks, bank reserves

• A) decrease and the money supply eventually decreases.
• B) decrease but the money supply does not change.
• C) increase and the money supply eventually increases.
• D) increase but the money supply does not change.

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Definitions:

System Clock

A timing device within a computer that synchronizes and governs the timing of all computer operations.

Volatile Storage

A type of memory that requires power to maintain the stored information; it loses its data when power is turned off.

CPU Speed

The speed at which a computer's central processing unit (CPU) executes instructions, typically measured in Hertz (Hz); it determines the efficiency and performance of the computer's processing power.