________ increases the size of the money multiplier. A) An ...

[tfester]

________ increases the size of the money multiplier.
 
  A) An open market sale of government securities by the Fed
  B) An increase in the currency drain ratio
  C) A reduction in the desired reserve ratio
  D) An open market purchase of government securities by the Fed
  E) An increase in the size of open market operations

Question 2

A balance of payments deficit occurs if
 
  A) the demand for a nation's currency exceeds the supply of the currency at the current exchange rate.
  B) exports exceed imports.
  C) the supply of a nation's currency is equal to the demand for the currency at the current exchange rate.
  D) the supply of a nation's currency exceeds the demand for the currency at the current exchange rate.

[aidanmbrowne]

Answer to Question 1

C

Answer to Question 2

D