When Cash or Coins Are Deposited in a Transactions Account

question 111

True/False

When cash or coins are deposited in a transactions account at a bank,the money supply immediately increases by the amount of the deposit multiplied by the money multiplier.

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Definitions:

Excess Cash

Funds that exceed the necessary operating, investing, and financing requirements of a company, potentially available for dividends or investments.

Earnings Per Share

A company's profit divided by its number of common outstanding shares, indicating the company's profitability.

Cash Dividend

A payment made by a corporation to its shareholders, usually in the form of cash.

Excess Cash

Funds that exceed the necessary operating and investment cash required by a business, often indicating potential for dividends, buybacks, or investments.