A currency drain ________ the amount of bank reserves available ...

[sammy]

A currency drain ________ the amount of bank reserves available to banks to make loans because ________.
 
  A) reduces; people are holding more money outside of the banks
  B) increases; people are holding less money outside of the banks
  C) reduces; people are holding less money outside of the banks
  D) reduces the monetary base; people are holding more money outside of the banks
  E) reduces; people are holding onto the money the banks could have borrowed from the Fed

Question 2

Joseph starts driving with much less care after buying car insurance. His behavior is an example of ________.
 
  A) moral hazard
  B) a domino effect
  C) adverse selection
  D) herd behavior

[TheDev123]

Answer to Question 1

A

Answer to Question 2

A

[sammy]

TYSM

[mjenn52]

Excellent