Henry Trudeau Deposits $2,000 in Currency in the First Street

question 32

Multiple Choice

Henry Trudeau deposits $2,000 in currency in the First Street Bank.Later that same day Jane Harris negotiates a loan for $5,400 at the same bank.This loan alone will:

• A)increase the supply of money by $2,100.
• B)increase the supply of money by $3,300.
• C)increase the supply of money by $5,400.
• D)decrease the supply of money by $3,300.