If Banks' Desired Reserve Ratio Increases from 0

question 1

Multiple Choice

If banks' desired reserve ratio increases from 0.10 to 0.15, the public still desires to hold the same amount of currency, the money supply will:

• A)increase.
• B)decrease.
• C)not change.
• D)either increase or decrease.

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Definitions:

Outgoing Person

An individual characterized by a sociable, extroverted, and often friendly demeanor, making them adept at interacting with others.

Terminal Value

In finance, it represents the estimated value of a business or project beyond the forecast period when future cash flows can be estimated. In ethics, it refers to the inherent value that an end action or state possesses in itself.

Social Respect

The regard and consideration shown by individuals or societies toward others based on perceived value or status.

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Constructive feedback aimed at encouraging positive changes in someone's behavior or outlook.