Which of the Following Events Would Tend to Cause the Money

question 59

Multiple Choice

Which of the following events would tend to cause the money supply to rise?

• A)Banks decide to keep fewer reserves, and people deposit currency in their demand deposit accounts.
• B)Banks decide to keep more reserves, and people convert more of their demand deposits to currency.
• C)Banks decide to keep fewer reserves, and people convert more of their demand deposits to currency.
• D)Banks decide to keep more reserves, and people deposit currency in their demand deposit accounts.

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Definitions:

Depreciation

The systematic allocation of the cost of a physical or tangible asset over its useful life, reflecting the asset's consumption or wear and tear.

Indirect Expense

Costs that are not directly linked to the production of goods or services but are necessary for the business's operations, such as utilities and rent.

Building

A structure used or intended for supporting or sheltering any use or continuous occupancy.

Income Statement

A financial document that provides a summary of a company's revenues, expenses, and profits over a specified period, typically a quarter or year.