During Wars the Public Tends to Hold Relatively More Currency

question 20

Multiple Choice

During wars the public tends to hold relatively more currency and relatively fewer deposits.This decision makes reserves

• A)and the money supply increase.
• B)and the money supply decrease.
• C)increase,but leaves the money supply unchanged.
• D)decrease,but leaves the money supply unchanged.

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Definitions:

Inventory

The goods and materials a business holds for the purpose of resale or production.

Depreciation

The accounting process of allocating the cost of tangible assets over their useful lives, reflecting wear and tear, or obsolescence.

Capital Gain/Loss

The profit or loss made from selling an asset for more or less than its purchase price.

Depreciates

The process by which an asset loses value over time, often due to wear and tear, age, or obsolescence, impacting its useful life.