Author Question: A currency drain occurs when the A) Fed increases the required reserve ratio. B) Fed sells U.S. ... (Read 38 times)

Melani1276 · **on:** Jun 29, 2018

A currency drain occurs when the

A) Fed increases the required reserve ratio.
B) Fed sells U.S. government securities.
C) non-bank public increases its holdings of currency outside the banking system.
D) banks reduce the number of loans they create with their excess reserves.
E) Fed buys U.S. government securities.

Question 2

Economic growth is enhanced by

A) free international trade.
B) limiting international trade so that the domestic economy can prosper.
C) discouraging saving, because increased saving means less spending.
D) ignoring incentive systems.
E) increasing welfare payments to the poor so they can afford to buy goods.