A Currency Drain ________ the Amount of Bank Reserves Available

question 257

Multiple Choice

A currency drain ________ the amount of bank reserves available to banks to make loans because ________.

• A)reduces;people are holding more money outside of the banks
• B)increases;people are holding less money outside of the banks
• C)reduces;people are holding less money outside of the banks
• D)reduces the monetary base;people are holding more money outside of the banks
• E)reduces;people are holding onto the money the banks could have borrowed from the Fed

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