The Money-Creating Ability of the Banking System May Be Lowered

question 49

Multiple Choice

The money-creating ability of the banking system may be lowered by:

• A)a decrease in the cash balances that people wish to hold.
• B)a fall in the overall rate of inflation.
• C)an increase in the excess reserves.
• D)an increase in total deposits.
• E)an increase in the reserve requirement.

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Definitions:

HS

A logical argument pattern of hypothetical syllogism, involving two conditional statements leading to a conclusion.

MP

Stands for "Member of Parliament," but in a logical context, it refers to a deductive pattern of reasoning where a specific conclusion is inferred from a general rule and a specific case.

Conj

An abbreviation for "Conjunction," a logical operator that connects two conditions or propositions where both must be true.

Inference Forms

Patterns of reasoning where specific statements lead logically to a conclusion.