Everything else held constant, an increase in the currency-checkable deposit ratio will mean

Everything else held constant, an increase in the currency-checkable deposit ratio will mean

A) an increase in currency in circulation and an increase in the money supply.
B) an increase in money supply but no change in reserves.
C) a decrease in the money supply.
D) an increase in currency in circulation but no change in the money supply.

Answer: The correct answer is a decrease in the money supply.

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