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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Definitions:

Bulk Billing

A system, often in healthcare, where the service provider bills the government directly for the entire service fee, ensuring the patient does not pay out-of-pocket expenses.

Design

A process of envisioning and planning the creation of objects, systems, or interactions.

Production

The process of creating goods and services from various inputs like raw materials and labor.

Purchasing

The process of obtaining goods or services, usually for business purposes.