The Size of the Effect of a Given Deposit of Cash

question 103

Multiple Choice

The size of the effect of a given deposit of cash into a demand deposit account on the money supply is greater:

• 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.

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Definitions:

Ground Tissue

Plant tissue that makes up the bulk of the plant body, involved in photosynthesis, storage, and support, excluding the vascular and dermal tissues.

Dermal Tissue

Dermal tissue is a protective outer layer of cells in plants, equivalent to skin in animals, that serves as the first defense barrier against the environment.

Mesophyll Tissue

The inner tissue of a leaf, containing many chloroplasts where photosynthesis takes place.

Photosynthesis

The process by which green plants, algae, and certain bacteria transform light energy into chemical energy, producing oxygen and glucose from carbon dioxide and water.