Question
If individuals hold less currency because it is easy to get currency from automatic teller machines, and everything else is the same, will the
If individuals hold less currency because it is easy to get currency from automatic teller machines, and everything else is the same, will the money supply be larger or smaller? O A Smaller, because currency is in M(1) and M(2). O O O B Smaller, because the simple money multiplier will be smaller. C Larger, because banks will be able to make more loans given the amount of reserves. The money supply will not be affected because the currency will most likely be deposited in checking accounts and be counted as part of M(1) or M(2).
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
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