An Increase in the Excess Reserves Banks Want to Hold

question 48

Multiple Choice

An increase in the excess reserves banks want to hold, together with people taking currency out of their demand deposit accounts, would:

• A)​increase the money supply.
• B)​decrease the money supply.
• C)​leave the money supply unchanged.
• D)​have an indeterminate effect on the money supply.

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Definitions:

Moral Reasoning

The process by which individuals think about, analyze, and evaluate moral issues and decisions.

Delinquency

Behavior, especially of a young person, that is illegal or not acceptable to most people, often involving criminal activities.

Interventionists

Individuals or entities that actively intervene or become involved in situations, typically to effect change or provide assistance.

Religion

An organized set of beliefs, practices, rituals, and symbols that increases an individual’s connection to a sacred or transcendent other (God, higher power, or higher truth).