Use the Information Below to Answer the Following Questions

question 25

Multiple Choice

Use the information below to answer the following questions.
Fact 24.3.1
The Bank of Speedy Creek has chosen the following initial balance sheet:

-Refer to Fact 24.3.1.Huck Finn comes along and deposits $10.After Huck's deposit,but before any other actions occur,the total amount 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:

Intrinsic Value

The inherent or true value of an asset, investment, or company, based on underlying perceptions of its worth.

January Call

An options contract that gives the holder the right to buy the underlying asset at a specified price within January.

Market Value

The current price at which an asset or service can be bought or sold in the open market.

Equity

The value of an ownership interest in a company, calculated as the company's assets minus its liabilities.