_____, the Greater Is the Effect of a Given Deposit

question 93

Multiple Choice

_____, the greater is the effect of a given deposit of cash into a demand deposit account on the money supply.

• 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
• E)The greater the fraction of money people want to hold as currency and the greater the required reserve ratio

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Definitions:

Balance Beam Scale

is a type of weighing scale that uses a balance beam to measure mass through a comparison of known weights.

Bladder Length

A measure of the physical dimension of the urinary bladder from base to apex.

Arm Circumference

A measurement around the arm, typically used in medical or fitness contexts to assess nutritional status or muscle mass.

Axillary

Referring to the underarm area.