Mr Garrison Has Recently Obtained a Bank Card from South

question 117

Multiple Choice

Mr. Garrison has recently obtained a bank card from South Park National Bank. Excited about the concept of using a little plastic card to get money from a machine, he quickly runs down to the nearest ATM and withdraws $500. This action has

• A) increased the money supply by $500.
• B) reduced the money supply by $500.
• C) reduced the bank's required reserves by $25 assuming the reserve ratio is 5 percent.
• D) not changed the money supply.

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Definitions:

Operating Cash Flow

Cash generated from the normal operating activities of a business over a specific period, excluding capital expenditures and investments.

Depreciation

The methodical distribution of the expense of a physical asset across its lifespan, representing its use, deterioration, or becoming outdated.

Perfect Vacuum

An idealized state with no matter or particles present, and hence no pressure or air, which is physically unattainable but used as a baseline or reference point.

Psia Gauge

A pressure measurement expressed in pounds per square inch absolute, including the atmospheric pressure.