In a system of fractional-reserve banking, even without any action by the central bank, the money supply declines if households choose to hold _ currency or if banks choose to hold _ excess reserves.

According to my research the Fractional-reserve banking is when banks accept deposits as well as make loans to customers, at the same time having a reserve equal to only a fraction of the bank's deposit liabilities. In this case the money supply declines if households choose to hold more currency or if banks choose to hold more, excess reserves.

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In a system of fractional-reserve banking, even without any action by the central bank, the money supply declines if households choose to hold _____ currency or if banks choose to hold _____ excess reserves.

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In a system of fractional-reserve banking, even without any action by the central bank, the money supply declines if households choose to hold _ currency or if banks choose to hold _ excess reserves.