Answer to Question #331113 in Macroeconomics for TSB

Question

We can expect that the amount of money that a bank creates will decrease when…

a.

the South African Reserve Bank increases the repo rate.

b.

more bank clients choose to deposit their funds at the bank.

c.

the bank borrows from the South African Reserve Bank.

d.

the bank's clients choose to hold a smaller part of their money in the form of cash.

Answer 1

a.

the South African Reserve Bank increases the repo rate.