Which of the Following Events Would Tend to Cause the Money

question 98

Multiple Choice

Which of the following events would tend to cause the money supply to fall?

• A)Banks decide to keep more reserves, and people deposit currency in their demand deposit accounts.
• B)Banks decide to keep more reserves, and people convert more of their demand deposits to currency.
• C)Banks decide to keep fewer reserves, and people deposit currency in their demand deposit accounts.
• D)Banks decide to keep fewer reserves, and people convert more of their demand deposits to currency.

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