What Would Be the Immediate Effect If an Individual Made

question 106

Multiple Choice

What would be the immediate effect if an individual made a $9,000 cash deposit in a bank?

• A) The money supply would rise by $9,000.
• B) The money supply would fall by $9,000.
• C) The money supply would not be affected.
• D) The money supply would fall but by less than the $9,000 deposit.

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Definitions:

General Journal

A ledger where all financial transactions of a business are initially recorded using double-entry bookkeeping.

Purchases Journal

A financial journal used to record all purchases of goods and services on credit.

Return Supplies

Returned goods or materials that were previously purchased, which can reduce the payable amount or be exchanged for credit.

Account Recorded

This refers to the entry or documentation of financial transactions in the appropriate accounts within a company's financial records.