Assume That Smith Deposits $600 in Currency in the XYZ

question 70

Multiple Choice

Assume that Smith deposits $600 in currency in the XYZ Bank.Later that same day Jones negotiates a loan for $1,200 at the same bank.In what direction and by what amount has this single transaction changed the supply of money?

• A)decreased by $1,200
• B)increased by $1,200
• C)increased by $600
• D)increased by $1,800