_____, 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

---

Definitions:

Finished Goods Inventory

Products that have completed the manufacturing process and are ready for sale.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, used for managing liquidity and ensuring a company can meet its obligations.

Budgeted Cash Receipts

An estimation of the cash a company expects to receive within a certain period, based on projected sales or revenue.

Budgeted Cash Disbursements

An estimate of the total amount of cash an organization plans to pay out over a specified period, including operating expenses and purchase of assets.