Question: 1 1 9 Multiple Choice 1 point If a portion of the loans extended by commercial banks is taken as cash rather than as checkable

119
Multiple Choice
1 point
If a portion of the loans extended by commercial banks is taken as cash rather than as checkable deposits, the maximum money-creating potential of the commercial banki system will
decrease.
increase.
be equal to twice the reciprocal of the reserve ratio.
be unaflicted.
Multiple Choice 1 point
In which of the following situations is it certain that the quantity of money demanded by the public will decrease?
nominal GDP decreases and the interest rate decreases
nominal GDP decreases and the interest rate increases
nominal GDP increases and the interest rate decreases
nominal GDP increases and the interest rate increases
1 1 9 Multiple Choice 1 point If a portion of the

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