A Currency Drain Occurs When the

question 39

Multiple Choice

A currency drain occurs when the

• A) non-bank public increases its holdings of currency outside the banking system.
• B) Reserve Bank sells government securities.
• C) Reserve Bank increases the required reserve ratio.
• D) banks reduce the number of loans they create with their excess reserves.
• E) None of the above.

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Definitions:

Adequate Remedy

A legal remedy considered sufficient and proportional to redress a harm or violation, making further litigation unnecessary.

Public Policy

Government policies intended to address public issues and affect the broader community.

Societal Values

The principles and standards shared by members of a society, which influence behavior and decisions.

Stare Decisis

A legal principle that mandates courts to follow the rulings of previous cases in similar circumstances.