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Which of the following would increase the deposit expansion multiplier? a. Decreases in the reserve requirement b. Increases in the reserve requirement c. Decreases in excess reserves d. Increased investor deposits in commercial bankse. Increases in excess reserves The maximum potential for which the entire banking system can create money is equal toa. a fraction of its required reserves. b. a fraction of its excess reserves.c. a multiple of its total reserves. d. its excess reserves. e. a multiple of its excess reserves. Which of the following would not constitute a currency drain? a. A withdrawal of coins from the banking system b. People carrying more money than usual in order to buy Christmas presents c. A purchase of government securities d. A banking panic that leads to large withdrawals from banks e. A withdrawal of currency from the banking system
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