If You Deposit $100 of Currency into a Demand Deposit

question 119

Multiple Choice

If you deposit $100 of currency into a demand deposit at a bank, this action by itself

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

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Definitions:

Complements

Goods that are often used together, where an increase in demand for one leads to an increase in demand for the other.

Shift In The Demand Curve

A change in the demand for a product or service, resulting from factors like changes in income, preferences, or prices of other goods.

Movement Along The Demand Curve

A change in the quantity demanded of a good due to a price change, holding all other factors constant.

Electronic Textbooks

Digital forms of textbooks, accessible on electronic devices, offering interactive features beyond what traditional printed textbooks can provide.