During a Bank Run,depositors Decide to Hold More Currency Relative

question 18

Multiple Choice

During a bank run,depositors decide to hold more currency relative to deposits and banks decide to hold more excess reserves relative to deposits.

• A)Both the decision to hold relatively more currency and the decision to hold relatively more excess reserves would make the money supply increase.
• B)Both the decision to hold relatively more currency and the decision to hold relatively more excess reserves would make the money supply decrease.
• C)The decision to hold relatively more currency would make the money supply increase.The decision to hold relatively more excess reserves would make the money supply decrease.
• D)The decision to hold relatively more currency would make the money supply increase.The decision to hold relatively more excess reserves would make the money supply decrease

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Definitions:

Meiosis

A process of cell division that results in four daughter cells each with half the number of chromosomes of the parent cell, essential for sexual reproduction.

Sperm

Male reproductive cells responsible for fertilizing a female's egg to initiate pregnancy.

Ova

The plural of ovum; female reproductive cells or eggs which, when fertilized by sperm, can develop into an embryo.

Chromosomes

Thread-like molecules that carry hereditary information for everything from height to hair color in the form of genes.