What are the variables that reduce the size of the money multiplier?

Answer:

The variables that reduce the size of the money multiplier are: the increase in the public's preference to hold ______________, and the increase in the bank's preference to hold idle reserves.

What qualities should money have to function well as money?

Answer:

Money has to be relatively scarce and relatively stable in supply, durable, ______________, divisible, easily authenticated, and difficult to counterfeit.

What is the basic money supply?

Answer:

The basic money supply is ______________, which consists of currency and checkable deposits.