While the Withdrawal of Cash from Banks Does Not Affect

question 27

True/False

While the withdrawal of cash from banks does not affect money supply immediately, it will affect the banking
system's lending capacity, which will eventually lead to a contraction in money supply.

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Definitions:

Deferred Revenue

Money received for goods or services which have not yet been delivered or performed; recognized as a liability until the revenue earning criteria are met.

Earned

Income or revenue that has been realized or generated, typically through the sale of goods or services.

Collected

The process of receiving or bringing in payments or money owed to an individual or business.

Interest Payable

This is the amount of interest expense that has accrued but not yet been paid by the company.