If You Deposit $100 of Currency into a Demand Deposit

question 119

Multiple Choice

If you deposit $100 of currency into a demand deposit at a bank, this action by itself

• A) does not change the money supply.
• B) increases the money supply.
• C) decreases the money supply.
• D) has an indeterminate effect on the money supply.

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Definitions:

Cost Per Equivalent Unit

A calculation used in process costing that distributes total costs (both direct and indirect) over the number of units produced, accounting for units that are partially completed.

Processing Department

A specialized department within a manufacturing facility where a specific type of process or function is performed on the product.

Units Started

The total number of units of product that a company begins processing over a certain period of time, marking the start of the production process.

Ending Work in Process

The value of products still in production at the end of an accounting period, including all related costs incurred up to that point.