An Increase in Income Will Cause

question 57

Multiple Choice

An increase in income will cause:

• A) a decrease in the supply of reserves.
• B) a decrease in the demand for currency.
• C) an increase in the supply of reserves.
• D) an increase in the supply of central bank money.
• E) an increase in the demand for currency.

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Definitions:

Stock Held

Shares of a company that are owned by an individual or entity, representing a portion of ownership in that company.

Initial Offering

The first sale or issuance of stock by a company to the public, typically referred to as an Initial Public Offering (IPO), marking a company's transition from private to public.

Sarbanes-Oxley Act

A law passed by the U.S. Congress in 2002 aimed at protecting investors from fraudulent financial reporting by corporations.

Securities Act of 1933

United States federal law enacted as a result of the stock market crash of 1929, which requires securities sold to the public to be registered and regulated.