If the currency-to-deposit ratio increases, what effect, if any, does this have on the monetary base, the money supply, total deposits, and economic growth?© BrainMass Inc. brainmass.com August 15, 2018, 7:11 am ad1c9bdddf
The response addresses the queries posted in 486 words with references.
//Before lettering about the effect of currency-to-deposit ratio, we have to first be aware of the currency-to-deposit ratio and its various aspects that bring change. So, firstly, I will write about the concept of currency-to-deposit ratio. //
It is the amount of currency that people hold relative to their deposits. In currency-deposit ratio, currency is divided by deposits. The ratio shows the behavior and preference of public in an economy. If currency-deposit ratio increases, there is a decrease in money supply. Decrease in currency deposit ratio leads to increase in money supply.
//Above, we discussed about the currency-to-deposit ratio and now as per the directions, we will discuss if the currency-to-deposit ratio increases, what effect does this ...
381 words, APA