An Increase in the Currency Drain

question 135

Multiple Choice

An increase in the currency drain

• A) decreases the quantity of money.
• B) decreases the monetary base.
• C) increases banks' reserves.
• D) increases banks' deposits.
• E) has no effect on the amount of the monetary base or the quantity of money.

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Definitions:

Estoppel

A legal principle that prevents someone from arguing something contrary to a claim they have previously made or accepted by their actions.

Apparent Authority

A situation where a reasonably prudent person would understand that an agent had the authority to act, even if the agent didn't have actual authority.

Purported Principal

An entity or individual represented as having granted authority to another, whether or not such authority actually exists.

Disclosed Principal

A principal whose identity is known by the third parties with whom the agent enters into contracts on behalf of the principal.