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:

Mega-

A prefix in medical terminology indicating enlargement or one million units.

Sym-

A prefix in medical terms denoting "together" or "with," used to describe conditions that involve multiple factors or elements acting together.

An-

Prefix indicating without or lack of.

Bifurcation

The division of something into two branches or parts, often referred to in a biological context such as blood vessels or airways.