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.

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Definitions:

Scienter

The knowledge of wrongdoing or fraudulent intent in the commission of a fraudulent act.

Negligent Performance

The failure to act with the level of care that someone of ordinary prudence would have exercised under the same circumstances, resulting in harm or damage.

Actual Knowledge

Awareness of a fact or circumstance based on firsthand experience or explicit information; not based on hearsay.

Illegal Payment

A transaction involving money or value that is made in violation of the law or regulatory rules.