Author Question: A currency drain ________ the amount of bank reserves available to banks to make loans because ... (Read 86 times)

sammy · **on:** Jun 29, 2018

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