If Banks Choose to Hold Excess Reserves

question 76

Multiple Choice

If banks choose to hold excess reserves

• A)Lending decreases, and the money supply decreases.
• B)Lending increases, and the money supply increases.
• C)Lending decreases, and the money supply increases.
• D)None of these.

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Definitions:

Collenchyma

In plants, simple tissue composed of living cells with unevenly thickened walls; provides flexible support.

Pectin

A natural polysaccharide found in fruits, used as a gelling agent in food production.

Parenchyma

A type of plant tissue composed of living cells, usually having only thin primary walls and varying widely by morphology and metabolism.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize foods with carbon dioxide and water, producing oxygen as a byproduct.