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

question 49

Multiple Choice

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

• A)falls.The Fed could lessen the impact of this by buying Treasury bonds.
• B)falls.The Fed could lessen the impact of this by selling Treasury bonds.
• C)rises.The Fed could lessen the impact of this by buying Treasury bonds.
• D)rises.The Fed could lessen the impact of the by selling Treasury bonds.

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Definitions:

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as a single economic entity.

Voting Shares

Shares of a corporation's stock that grant the shareholder the right to vote on corporate matters, such as the election of the board of directors.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, and cash flows of a parent company and its subsidiaries as one single entity.

Voting Stock

Shares that give the holder the right to vote on company matters, such as electing the board of directors.