During Wars, the Public Tends to Hold Relatively More Currency

question 181

Multiple Choice

During wars, the public tends to hold relatively more currency and relatively fewer deposits. Which of the following best describes the effects of this increase in currency holdings?

• A)Reserves would decrease, and the money supply would increase.
• B)Reserves and the money supply would decrease.
• C)Reserves would increase, but the money supply would be unchanged.
• D)Reserves would decrease, but the money supply would be unchanged.

---

Definitions:

Revenues

The total amount of money generated by the sale of goods or services related to a company's primary operations.

Difference Approach

A method used in various fields to understand or analyze differences between entities or phenomena, often to derive specific conclusions or solutions.

Dallas Stores

Retail outlets or branches located in Dallas, typically referring to their specific performance, strategies, or relevancy in market analysis.

Control Group

in experimental research, is a group of subjects that does not receive the treatment or intervention being tested, serving as a baseline to compare the effects of the treatment on the experimental group.