In the months of November and December, people in the United States hold a larger part of their money in the form of currency because they intend to shop and travel for the holidays. As a result, other things the same, the money supply increases.

Question

Quizplus · Accepted Answer

The money supply does not automatically increase just because people hold a larger part of their money in the form of currency for shopping and travel. The total money supply is determined by the central bank and banking system, not by changes in how people choose to hold their existing money.

In the Months of November and December, People in the United