If the Public Decides to Hold More Currency and Fewer

question 102

Multiple Choice

If the public decides to hold more currency and fewer deposits in banks, bank reserves

• A) decrease and the money supply eventually decreases.
• B) decrease but the money supply does not change.
• C) increase and the money supply eventually increases.
• D) increase but the money supply does not change.

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Definitions:

Synapse

A Synapse is the junction across which a nerve impulse passes from an axon terminal to a neuron, muscle cell, or gland.

Electrical

Pertaining to electricity, a form of energy resulting from the existence of charged particles such as electrons or protons.

Chemical Message

Information passed between organisms or cells, often in the form of hormones or neurotransmitters, that affects physiological or behavioral changes.

Synapse

The junction between two nerve cells, consisting of a minute gap across which impulses pass by diffusion of a neurotransmitter.