A Currency Drain ________ the Amount of Bank Reserves Available

question 8

Multiple Choice

A currency drain ________ the amount of bank reserves available to banks to make loans because ________.

• A)reduces;people are holding less money outside of the banks
• B)reduces;people are holding more money outside of the banks
• C)increases;people are holding less money outside of the banks
• D)reduces;people are holding onto the money the banks could have borrowed from the Reserve Bank
• E)increases;people are holding more money outside of the banks

---

Definitions:

Social Problems

Issues within a society that are viewed as undesirable or harmful, often requiring collective solutions.

Rationalizing

The process of justifying actions or decisions with logical reasons, even if those reasons are not the true underlying motivations.

Inner Circle Concept

A theory or model that suggests the importance of a close group or network of individuals that influence one's behavior, decisions, and success.

Future Favors

The concept of performing kind acts or services with the expectation of receiving help or support in return in the future.