The money supply decreases when
a. banks decide to have a policy of lending the amount equal to the reserve requirement times the liabilities of the bank.
b. the reserve requirement decreases.
c. excess reserves are loaned out.
d. people decide to hide their money "at home" instead of bringing it into the bank.
e. less currency is held by the public.
The demand for money is based on
a. a demand for cash, a demand for securities, and a demand for real estate.
b. a demand for liquidity and a demand for wealth.
c. a speculative demand, a transactions demand, and a precautionary demand.
d. a necessity demand and a luxury demand.
e. a consumption demand, an investment demand, and a government demand.
If people want to hold money that is convenient for day-to-day buying and selling of products, then there is a
a. rise in the money supply.
b. transactions demand for money.
c. asset demand for money.
d. precautionary demand for money
e. speculative demand for
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