Quizzol

QUESTION:

Suppose all banks maintain a 100 percent reserve ratio. If an individual deposits $1,000 of currency in a bank, _______.

a. the money supply increases by less than $1,000

b. the money supply increases by more than $1,000

c. the money supply decreases by less than $1,000

d. the money supply is unaffected

e. the money supply decreases by more than $1,000

ANSWER:

d. the money supply is unaffected

Posted by Cleveland on September 9, 2024