You Deposit $4,000 in Currency in Your Checking Account

question 449

Multiple Choice

You deposit $4,000 in currency in your checking account. The bank holds 20 percent of all deposits as desired reserves. As a direct result of your deposit, your bank will create

• A) $3,200 of new money.
• B) $200 of new money.
• C) $1,600 of new money.
• D) $800 of new money.

---

Definitions:

Silver

A precious metal with the chemical symbol Ag and atomic number 47, known for its conductivity and antibacterial properties.

Mass

A property of physical matter which determines the strength of its mutual gravitational attraction to other bodies and its resistance to being accelerated by a force.

Moles

A unit of measure in chemistry representing a quantity of chemical substance that contains as many elementary entities (atoms, molecules, ions, etc.) as there are atoms in 12 grams of pure carbon-12.

NaCl

Sodium chloride, commonly known as table salt, is an ionic compound consisting of sodium and chlorine ions.