Use the Information Below to Answer the Following Questions

question 44

Multiple Choice

Use the information below to answer the following questions.
Fact 24.4.2
The Bank of Hobbiton has chosen the following initial balance sheet:

-Refer to Fact 24.4.2. Bilbo Baggins comes to the bank and deposits a $100 bill. After Bilbo's deposit, but before any other actions occur, the total quantity of money in the economy

• A)has stayed the same, with its components unchanged.
• B)has stayed the same, with currency decreasing and deposits increasing.
• C)has fallen, with currency decreasing and deposits staying the same.
• D)has risen, with currency unchanged and deposits increasing.
• E)has fallen, with currency decreasing and deposits unchanged.

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Definitions:

Overhead

The ongoing business expenses not directly attributed to creating a product or service, such as rent, utilities, and administrative costs.

Lowest Terms

The equivalent ratio having the smallest possible integers for its terms.

Division

A mathematical operation where one quantity is divided by another, resulting in a quotient and sometimes a remainder.

Administration Fee

A fee charged by an entity for the management services it provides.