Suppose a Student Deposits into a Downtown Bank a $200

question 90

Multiple Choice

Suppose a student deposits into a downtown bank a $200 cheque that she received from her parents in the suburbs. This transaction alone would

• A)decrease the money supply.
• B)decrease the money supply by $1000 if the target reserve ratio was 20 percent.
• C)increase the money supply by an indeterminate amount.
• D)not change the money supply.
• E)increase the money supply by $1000 if the target reserve ratio was 20 percent.

---

Definitions:

Economically Injurious Falsehood

A false statement made about a business or product that causes financial harm, also known as trade libel.

Disparagement of Property

Making false and damaging statements about someone's property or business practices, which may result in financial loss.

Legally Recognized Injury

A wrong or damage suffered by an individual which is identified and acknowledged under the law for purposes of compensation or remedy.

Negligent Act

An action or failure to act in a situation where a person has a duty to exercise reasonable care, resulting in harm to another party.