If People Decide to Hold More Currency Relative to Deposits,the

question 123

Multiple Choice

If people decide to hold more currency relative to deposits,the money supply

• A)falls.The larger the reserve ratio is, the more it falls.
• B)falls.The larger the reserve ratio is, the less it falls.
• C)rises.The larger the reserve ratio is, the more it rises.
• D)rises.The larger the reserve ratio is, the less it rises.

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Definitions:

Paper Check Processing

The procedure involved in the exchange and clearance of checks between banks through physical or electronic means.

Perceived Market Share

An estimate of the percentage of the total market volume or value that is captured by a company or product, based on the perception of customers or market analysts.

Actual Market Share

The real percentage of an industry or market's total sales that is earned by a particular company over a specified time period.

Demand Curve

A visual diagram that illustrates the connection between the cost of a product or service and the amount consumers want to buy at different price levels.