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

question 157

Multiple Choice

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

• A) It increases the money supply by more than $100.
• B) It increases the money supply by less than $100.
• C) It decreases the money supply by more than $100.
• D) It decreases the money supply by less than $100.

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Definitions:

Sale of Old Equipment

The process of disposing of outmoded or surplus equipment, typically to free up space or raise funds.

Cash Inflow

The total amount of money being transferred into a business, from operations, investments, or financing activities.

Existing Structure

The current organization or arrangement of a company's capital, operations, or physical layout.

Initial Outlay

The initial investment amount or initial cost incurred in starting a project, purchasing an asset, or initiating an investment.