If the public decides to hold more currency and fewer deposits in banks, bank reserves a. decrease and the money supply eventually decreases. b. increase but the money supply does not change. c. decrease but the money supply does not change.

Respuesta :

If the public holds money, supply does not change, however, bank reverse will decrease, option C is correct.

What is Money Supply?

In simple terms, it can be defined as the total amount or volume of money in public or the volume of money in possession of the public.

When the bank holds a large amount of money than the public, the money in circulation will decrease.

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