Which of the following reduces the money multiplier? A) Banks ...

[vicky]

Which of the following reduces the money multiplier?
 
  A) Banks loan all their excess reserves.
  B) Bank customers hold some of the loan proceeds as currency outside the banking system.
  C) The Fed reduces the required reserve ratio.
  D) Banks impose a currency drain on bank customers.
  E) The Fed sells U.S. government securities.

Question 2

People specialize in activities in which they have a comparative advantage
 
  A) if they know they are more productive than anyone else in the particular activity.
  B) only if they understand the logic of comparative advantage.
  C) when they expect to obtain more of whatever they want by doing so.
  D) only when all of the above are true.

[kjohnson]

Answer to Question 1

B

Answer to Question 2

C