If People Decide to Hold More Currency Relative to Deposits,the

question 101

Multiple Choice

If people decide to hold more currency relative to deposits,the money supply

• A)falls.The larger the reserve ratio is,the more the money supply falls.
• B)falls.The larger the reserve ratio is,the less the money supply falls.
• C)rises.The larger the reserve ratio is,the more the money supply rises.
• D)rises.The larger the reserve ratio is,the less the money supply rises.

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Definitions:

Pension Plan

A retirement plan that requires an employer to make contributions into a pool of funds set aside for a worker's future benefit.

Annual Pension Benefit

The amount of money an individual receives annually from their retirement plan after retiring.

Variable Component

A cost or expense that changes in proportion to changes in a business’s activity level.

Payroll System

A system used by companies to organize, calculate, and process payments to employees for their services.