If Banks' Desired Reserve Ratio Increases from 10% to 15%,the

question 85

Multiple Choice

If banks' desired reserve ratio increases from 10% to 15%,the public still desires to hold the same amount of currency,and the Bank of Canada takes no action,the money supply will

• A) increase.
• B) decrease.
• C) not change.
• D) either increase or decrease.
• E) equal the quantity of currency that is still in usE.

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Definitions:

Spending Variances

Differences between the budgeted or planned amount of expenses and the actual amount spent.

Customers Served

The number of consumers who have been provided with services or products by a business during a specified period.

Revenue Variance

The difference between the actual revenue earned by a company and its expected (or budgeted) revenue.

Spending Variances

Variances that arise when there is a difference between the actual amount spent on a particular item or activity and the budgeted or forecasted amount.