In a system of fractional-reserve banking, even without any action by the central bank, the money supply declines if households choose to hold currency or if banks choose to hold excess reserves.

more; more

Explanation:

According to my research the Fractional-reserve banking is when banks accept deposits as well as make loans to customers, at the same time having a reserve equal to only a fraction of the bank's deposit liabilities. In this case the money supply declines if households choose to hold more currency or if banks choose to hold more, excess reserves.

I hope this answered your question. If you have any more questions feel free to ask away at .

answer; blank(1); autonomous; blank(2) a wlan controller-based architecture;

answer; /// blank(1); above; blank(2); less;