You withdraw $100 from your checking account. How does this affect the money supply and the reserves of your bank?
a. The money supply increases, and the reserves of your bank decline.
b. Both money supply and the reserves of your bank increase.
c. There is no change in the money supply, and the reserves of your bank decline.
d. The money supply decreases, and the reserves of your bank increase.
C
You might also like to view...
Many nations have formed customs unions that ended tariffs and trade restrictions among its members, and adopted uniform tariffs for nonmember countries. Which of the following is a successful example of such a customs union?
(A) Asia-Pacific Economic Cooperation (APEC) (B) World Trade Organization (WTO) (C) European Union (EU) (D) North American Free Trade Agreement (NAFTA).
One difficulty with the idea of comparable worth is that
a. it does not address the idea of compensating wage differentials b. it would reduce the federal budget deficit c. it would cause aggregate wages to fall d. a government agency cannot accurately evaluate the many different characteristics of jobs e. it would not take into account differences in the supply of labor among firms