An Increase in the Excess Reserves Banks Want to Hold

question 154

Multiple Choice

An increase in the excess reserves banks want to hold, together with people depositing currency into their demand deposit accounts, would:

• A)​increase the money supply.
• B)​decrease the money supply.
• C)​leave the money supply unchanged.
• D)​have an indeterminate effect on the money supply.

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Definitions:

Sentences

Sentences are structured groups of words that express clear statements, questions, commands, or exclamations, serving as the basic building blocks of language and communication.

Protodeclarative

A form of pointing or showing by infants, used to direct the attention of others to objects or events, serving a declarative communicative function.

Conversational

Relating to or characteristic of informal spoken exchange or dialogue.

Referring

The act of directing someone to a different source or authority for information, help, or action.