The Money Supply Will Increase by a Multiple of the Increase

question 104

Multiple Choice

The money supply will increase by a multiple of the increase in bank reserves created by the central bank unless:

• A)there is fractional reserve banking.
• B)there is 100 percent reserve banking.
• C)the public holds no currency.
• D)banks' desired reserve/deposit ratio is 0.20.

---

Definitions:

Local Competitors

Businesses within the same geographic area that offer similar products or services and compete for the same customer base.

Managers

Individuals in charge of directing and overseeing the activities of a group or organization to achieve specific objectives.

Union Organizing Campaign

A coordinated effort aimed at convincing workers to join or form a union to negotiate collectively with their employer.

Organizations

Groups of people who work together in an organized way for a shared purpose.