If Many Banks Fail, This Is Likely To

question 41

Multiple Choice

If many banks fail, this is likely to:

• A) increase the ratio of currency to deposits.
• B) decrease the ratio of currency to deposits.
• C) have no effect on the ratio of currency to deposits.
• D) decrease the amount of currency in circulation, if the Fed takes no action.

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Definitions:

Intron

Intervening sequence found between exons in mRNA; removed by RNA processing before translation.

Exon

Segment of mRNA containing the protein-coding portion of a gene that remains within the mRNA after splicing has occurred.

Adenine

One of the four nucleobase molecules in DNA and RNA, which pairs with thymine in DNA or uracil in RNA and is a fundamental component of genetic coding.

Thymine

A nitrogenous base found in DNA, pairing with adenine through hydrogen bonds.