When an Individual Deposits Currency into a Chequing Account

question 14

Multiple Choice

When an individual deposits currency into a chequing account,

• A) bank reserves increase,which increases the amount banks can lend,thereby increasing the money supply.
• B) bank reserves decrease,which reduces the amount banks can lend,thereby reducing the money supply.
• C) bank reserves are unchanged.
• D) bank reserves decrease,which increases the amount banks can lend,thereby increasing the money supply.
• E) bank reserves increase,which reduces the amount banks can lend,thereby reducing the money supply.

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Definitions:

Dividend Income

Income earned by investors from receiving dividends, which are distributed portions of a company's profit.

Non-Controlling Interest

The portion of equity in a subsidiary not attributable, directly or indirectly, to the parent company, reflecting the minority shareholder's stake in the subsidiary’s net assets.

Entity Method

A valuation approach in business combination accounting that views the acquiring and target company as a single entity from the date of acquisition.

Non-Controlling Interest

The portion of equity interest in a subsidiary not attributable to the parent company, reflecting the minority shareholders' stake.