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mr Goodwill [35]
4 years ago
13

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.
Business
1 answer:
MariettaO [177]4 years ago
8 0

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.

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The organization must first understand what skills are needed to effectively respond to an incident. If necessary, management mu
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Break-Even Units, Contribution Margin Ratio, Multiple-Product Breakeven, Margin of Safety, Degree of Operating Leverage Jellico
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