The Greater the Currency Drain Ratio

question 17

Multiple Choice

The greater the currency drain ratio,

• A) the smaller is the quantity of deposits and money that the banking system can create.
• B) the larger the ratio of excess reserves to currency.
• C) the smaller is the quantity of currency the public hold outside the bank.
• D) the larger is the quantity of deposits and money that the banking system can create.
• E) None of the above.

---

Definitions:

Interviewing

The process of asking questions and obtaining answers from people, often used in research, journalism, or employment selection.

Lecture Presentation

A formal talk or speech given to an audience or class, often involving educational or informative content and visual aids.

Acknowledges

Acknowledges refers to the act of recognizing or admitting the existence, truth, or fact of something.

Passing Judgment

The act of forming an opinion or evaluation by discerning and comparing.