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

question 101

Multiple Choice

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

• A)falls.The larger the reserve ratio is,the more the money supply falls.
• B)falls.The larger the reserve ratio is,the less the money supply falls.
• C)rises.The larger the reserve ratio is,the more the money supply rises.
• D)rises.The larger the reserve ratio is,the less the money supply rises.