A Currency Drain Occurs When the

question 99

Multiple Choice

A currency drain occurs when the

• A)Fed increases the required reserve ratio.
• B)Fed buys U.S. government securities.
• C)banks reduce the number of loans they create with their excess reserves.
• D)non-bank public increases its holdings of currency outside the banking system.
• E)Fed sells U.S. government securities.

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Multiple Cultures

The coexistence and interaction of diverse cultural traditions and practices within a society or between societies.

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