Question

If many banks fail, this is likely to: A) increase the ratio of currency to deposits. B) decrease the ratio of currency to deposits. C) have no effect on the ratio of currency to deposits. D) decrease the amount of currency in circulation if the Fed takes no action.

Answer 1

A - Increase the ratio of currency to deposits

Step-by-step explanation:

when banks are failing people will start having doubts about the banks resulting in not trusting their operations.This occurence will make people keep their monies