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Author Question: Which of the following constitutes a currency drain from the banking system? a. Purchase of ... (Read 14 times)

chandani

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on: Jun 30, 2018
Which of the following constitutes a currency drain from the banking system?
 a. Purchase of government securities
  b. New demand deposits
  c. Banks lending out all excess reserves
  d. A banking panic that leads to large withdrawals from banks
  e. Lower required reserve holdings

Question 2

Assume that coffee and tea are substitutes for each other. If weather conditions cause a substantial portion of the available coffee crop to be destroyed, then most probably:
 a. the price of tea will decrease.
 b. the price of coffee will decrease.
  c. the price of tea will increase
 d. none of the above


tandmlomax84

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Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

c


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