During a Bank Run,depositors Decide to Hold More Currency Relative

question 18

Multiple Choice

During a bank run,depositors decide to hold more currency relative to deposits and banks decide to hold more excess reserves relative to deposits.

• A)Both the decision to hold relatively more currency and the decision to hold relatively more excess reserves would make the money supply increase.
• B)Both the decision to hold relatively more currency and the decision to hold relatively more excess reserves would make the money supply decrease.
• C)The decision to hold relatively more currency would make the money supply increase.The decision to hold relatively more excess reserves would make the money supply decrease.
• D)The decision to hold relatively more currency would make the money supply increase.The decision to hold relatively more excess reserves would make the money supply decrease

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Definitions:

Performance Review

A formal assessment in which the performance of an employee is evaluated in terms of job effectiveness.

Trained

Having received instruction or skill development through formal or informal educational programs.

Ethics Competency

The skill to grasp and employ ethical guidelines and criteria in the decision-making procedure.

Stakeholder Ethics

The moral principles and values that should guide the interactions and decisions involving all parties with an interest in an organization.