When Maria Deposits $100 in Currency in Her Checkable Deposit

question 49

Multiple Choice

When Maria deposits $100 in currency in her checkable deposit at Bank of America, the immediate effect is that the quantity of M1

• A)changes, but the direction of the change depends on whether the deposit was accepted by a thrift institution or a commercial bank.
• B)increases.
• C)decreases.
• D)changes only if Bank of America does not have excess reserves.
• E)does not change.

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Definitions:

Navigable Waters

Bodies of water that are legally recognized as being suitable for public transportation and commerce.

Clean Air Act

A landmark piece of U.S. federal legislation passed to control air pollution on a national level, regulating emissions from both stationary and mobile sources.

Wetlands

Areas of land saturated with water, either seasonally or permanently, which play a crucial role in the ecosystem.

Clean Water Act

A U.S. federal law established to regulate the discharge of pollutants into the waters of the United States and to quality standards for surface waters.