If Bankers Decide to Keep a Lower Fraction of Deposits

question 25

Multiple Choice

If bankers decide to keep a lower fraction of deposits on reserve, the money supply will

• A)decrease.
• B)increase.
• C)remain unchanged.
• D)move more quickly through the economy.

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Definitions:

Fish

Aquatic animals that are typically covered with scales and have gills for breathing in water.

Coconuts

The large, brown, hard-shelled seeds of the coconut palm, known for their edible white flesh and water, and used in various culinary and non-culinary applications.

Produces

The act of creating or manufacturing goods and services to meet consumer demand.

Clothing

Items worn on the body, typically made from fabrics or textiles, for practicality or fashion.