1. describe the effect each action below will have on the money supply. explain your reasoning.

banks decide to keep more of their assets as reserves in order to avoid risking a shortage of the required reserve.

What will happens to the cash supply if the banks choose to keep a greater amount of their benefits as stores with a specific end goal to abstain from gambling a deficiency of the required hold is that it would NOT contract the cash supply, it would worthy motivation the supply of cash to develop at a slower pace. So it would diminish the rate of development of the cash supply.

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