Joe Deposits $200 in Currency into His Checking Account at a Bank

question 31

Multiple Choice

Joe deposits $200 in currency into his checking account at a bank. This deposit is treated as

• A) a subtraction of $200 from the money supply because the $200 in currency is no longer in circulation.
• B) an addition of $200 to the money supply because of the creation of a checkable deposit of $200.
• C) an addition of $200 to the money supply because the bank holds $200 in currency and the checking account has been increased by $200.
• D) no change in the money supply because the $200 in currency has been converted to a $200 increase in checkable deposits.

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Definitions:

Cluster Sampling

A probability sampling method in which existing groups or geographic areas, called clusters, are identified. Clusters are randomly sampled and then everyone in the selected clusters participates in the study.

College Cafeteria

A dining establishment located within a college that provides meals to students, faculty, and sometimes the public.

Probability Sampling

Type of sampling procedure in which one is able to specify the probability that any member of the populationwill be included in the sample.

Specific Population

A specific population refers to a defined group of individuals who share one or more characteristics for the purposes of research or study.