Use the Information Below to Answer the Following Questions

question 21

Multiple Choice

Use the information below to answer the following questions.
Fact 8.4.2
The Bank of Hobbiton has chosen the following initial balance sheet:

-Refer to Fact 8.4.2.Bilbo Baggins comes to the bank and deposits a $100 bill.After Bilbo's deposit, but before any other actions occur, the total quantity of money in the economy

• A)has fallen, with currency decreasing and deposits unchanged.
• B)has stayed the same, with its components unchanged.
• C)has risen, with currency unchanged and deposits increasing.
• D)has stayed the same, with currency decreasing and deposits increasing.
• E)has fallen, with currency decreasing and deposits staying the same.

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Definitions:

Authority

The ability or prerogative to issue commands, decide on matters, and compel adherence.

Decisions

The choices made by individuals or organizations among two or more alternatives.

Return On Investment

A financial metric used to evaluate the efficiency of an investment or compare the efficiency of several investments, calculating the return relative to the investment's cost.

Income From Operations

Revenue generated from a company's regular business activities, excluding revenue from non-operating sources.