If You Deposit $100 into a Demand Deposit at a Bank

question 8

Multiple Choice

If you deposit $100 into a demand deposit at a bank, what does this action by itself do to the money supply?

• A)It does not change the money supply.
• B)It increases the money supply.
• C)It decreases the money supply.
• D)It has an indeterminate effect on the money supply.

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Definitions:

Merkel Cells

Specialized skin cells involved in the sensation of touch.

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The process and timeline involved in ordering and receiving new stock to replace sold or used inventory.

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