An Increase in the Currency Drain ________

question 226

Multiple Choice

An increase in the currency drain ________.

• A) increases the size of the money multiplier
• B) decreases the size of the money multiplier
• C) increases the deposits in all banks
• D) decreases the size of the monetary base
• E) increases the size of the monetary base

---

Definitions:

Merchandise Inventory

Goods that are purchased for the purpose of being sold to customers in the normal course of business.

Interest Rate

The percentage of an amount of money charged by a lender to a borrower for the use of borrowed money.

Face Amount

The total value that will be paid to beneficiaries at the maturity of an insurance policy or the principal value of a bond at its maturity.

Note Issued

A financial instrument representing a promise to pay a specified amount of money at a future date, often used for loans or as corporate debt.