The Size of the Effect of a Given Deposit of Cash

question 103

Multiple Choice

The size of the effect of a given deposit of cash into a demand deposit account on the money supply is greater:

• A)​the greater the fraction of money people want to hold as currency and the greater the fraction of deposits banks want to hold as excess reserves.
• B)​the greater the fraction of money people want to hold as currency and the smaller the fraction of deposits banks want to hold as excess reserves.
• C)​the smaller the fraction of money people want to hold as currency and the greater the fraction of deposits banks want to hold as excess reserves.
• D)​the smaller the fraction of money people want to hold as currency and the smaller the fraction of deposits banks want to hold as excess reserves.

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Definitions:

Chronological Age

The age of an individual measured in years from the date of birth.

Unhealthy Patterns

Refers to repetitive behaviors or habits that negatively affect an individual's mental, physical, or emotional well-being.

Psychosocial Theory

A theory proposed by Erik Erikson that suggests personal development is influenced by society, culture, and individual challenges across eight stages of life.

Psychosexual Theory

A Freudian psychological theory positing that children's development occurs in a series of fixed stages focused on different pleasure areas of the body.