Which of the Following Reduces the Money Multiplier

question 338

Multiple Choice

Which of the following reduces the money multiplier?

• A)Banks loan all their excess reserves.
• B)Bank customers hold some of the loan proceeds as currency outside the banking system.
• C)The Fed reduces the required reserve ratio.
• D)Banks impose a currency drain on bank customers.
• E)The Fed sells U.S.government securities.

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Definitions:

Consciously Aware

The state of being fully alert and aware of one's thoughts, feelings, and surroundings.

Emotions

Refers to complex psychological states that involve a subjective experience, a physiological response, and a behavioral or expressive response.

Behavioral Intentions

An individual's stated plans or readiness to perform a particular behavior, often a predictor of actual behavior under certain conditions.

Past Experience

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