While the Fed can influence the money stock, the ratio of currency to deposits in the country at any given time is determined
a. By the Treasury
b. Jointly by the Treasury and the Fed
c. Only by lending institutions which provide banking services
d. Only by the actions of the Treasury Department
e. By the public, as households and businesses hold money in the form they prefer

Respuesta :

The Treasury and the Fed work together to calculate the country's currency-to-deposits ratio at any given time. The correct response to the question is option (b).

Define currency to deposit ratio.

The currency deposit ratio shows what proportion of total deposits are held in actual money. The money multiplier decreases as the ratio of cash deposits rises.

Both the Federal Reserve and the U.S. Treasury are separate entities. All funds received by and spent by the government are managed by the Treasury. By regulating the amount of money in circulation, the Federal Reserve's primary responsibility is to ensure economic stability.

To know more about currency to deposit ratio, visit:

https://brainly.com/question/14920622

#SPJ4