Everything Else Held Constant, an Increase in Currency Holdings Will

question 106

Multiple Choice

Everything else held constant, an increase in currency holdings will cause ________.

• A) the money supply to rise
• B) the money supply to remain constant
• C) the money supply to fall
• D) chequable deposits to rise

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Definitions:

Investment Account

An account held at a financial institution that is used to buy, hold, and sell various investment securities like stocks, bonds, and mutual funds.

New Shares

Shares issued by a company for the first time to the public or existing shareholders as part of a capital raising or expansion strategy.

Consolidated Net Income

The total net income of a parent company and all its subsidiaries, after eliminating inter-company transactions and dividends received from the subsidiaries.

Noncontrolling Interest

A minority stake in a company, held by investors or other companies that do not have control over business operations.