Which of the following will limit the expansion of the money supply following a new deposit? A strong demand for new loans A re-depositing of all loan proceeds People hanging onto currency in private safes outside of commercial banks Failure of banks to voluntarily hold excess reserves

Which of the following will limit the expansion of the money supply following a new deposit? A strong demand for new loans A re-depositing of all loan proceeds People hanging onto currency in private safes outside of commercial banks Failure of banks to voluntarily hold excess reserves

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

choose corr

Which of the following will limit
the expansion of the money
supply following a new deposit?
A strong demand for new
loans
A re-depositing of all loan
proceeds
People hanging onto
currency in private safes
outside of commercial banks
Failure of banks to voluntarily
hold excess reserves

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