Harry Gets $1,000 in Currency from His Grandfather When He

question 62

Multiple Choice

Harry gets $1,000 in currency from his grandfather when he graduates from college. He deposits these funds into his checking account. What is the impact on the monetary base of Harry's deposit?

• A) The monetary base did not change
• B) The monetary base increased by $1,000
• C) The monetary base decreased by $1,000
• D) The monetary base increases by more than a $1,000

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Definitions:

Depreciation Rates

Percentages or methods used to systematically reduce the book value of a tangible asset over its useful life.

Double-Declining-Balance

An accelerated depreciation method that doubles the straight-line depreciation rate, reducing the asset's book value more quickly.

Straight-Line

A method of calculating depreciation of an asset, which allocates an equal amount of depreciation each year over the asset's useful life.

Depreciation Expense

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