What Effect Would a Decrease in Currency in Circulation Combined

question 148

Multiple Choice

What effect would a decrease in currency in circulation combined with an equal increase in savings account deposits have?

• A)It would increase M2 but have no effect on M2+.
• B)It would decrease both M2 and M2+.
• C)It would increase both M2 and M2+.
• D)It would have no effect on either M2 or M2+.

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Definitions:

Injury

Physical harm or damage to a person's body, or harm to one's reputation or emotions in a legal context.

Rescission

The process of unwinding a transaction, returning all parties to their pre-contractual state.

Fraud

The intentional deception or misrepresentation made by a person or entity to gain an unfair advantage or harm another party.

Misrepresentation

The act of giving false or misleading information about a material fact, which can lead another person to act to their detriment or alter their position.