Everything Else Held Constant,if the Sum of the Required Reserve

question 176

Multiple Choice

Everything else held constant,if the sum of the required reserve ratio and the excess reserve ratio is less than one,an increase in the currency-checkable deposit ratio will mean

• A)an increase in currency in circulation and an increase in the money supply.
• B)an increase in money supply but no change in reserves.
• C)a decrease in the money supply.
• D)an increase in currency in circulation but no change in the money supply.

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Definitions:

Spending Variance

The difference between the budgeted or planned amount of cost and the actual amount incurred.

Total Expenses

The cumulative amount of all costs and expenses incurred by a business during a specified reporting period.

Spending Variance

The difference between the actual amount of money spent and the budgeted amount for a particular cost category or department.

Planning Budget

A planning budget is used for guiding a company's spending and operational goals before the start of a financial period.