pookie588 pookie588

27-02-2020
Business

contestada

In a 100-percent reserve banking system, if people decided to decrease the amount of currency they held by increasing the amount they held in checkable deposits a M1 would not change. b M1 might rise or fall. c M1 would increase. d M1 would decrease.

Respuesta :

TomShelby TomShelby

28-02-2020

Answer:

a M1 would not change.

Explanation:

the checkable deposits are part of M1 as well as the currency and coins. Therefore, a component of M1 decrease (currency) while another of M1 (checkable deposits) increase.

As the banking system works with a 100-percent required reserve there is no multiplier effect from the deposit therefore M1 do not change.

Answer Link

Otras preguntas

What happened during the camp David accords

Two identical 9.60-g metal spheres (small enough to be treated as particles) are hung from separate 500-mm strings attached to the same nail in a ceiling. Surpl

ots The amount of rain that fell in Tokyo, Japan for 3 consecutive days is shown in the table below. The measurements are rounded to the nearest of a centimeter

Sarah needs funding to research the efficacy of a certain drug for the treatment of cancer. Though her initial trials have been inconclusive, Sarah is sure that

WhAt is the median of the data?

In a short story, a young woman moves to the United States during high school. Soon her English is much better than that of her family, but she is expected to m

A six-sided number cube is rolled twice. What is the probability that the first roll is an even number and the second roll is a number greater than 4? One-six

citizens are not allowed to criticize the government is that Autocratic or Democratic

Please answer this correctly

Definition: This is a chemical process that uses light to process carbon dioxide in plants. Example: Producers perform this function es ) Term: Type term here C