Assume the Standard Toy Company negotiates a loan for $5,000 from the Metro Bank and receives a demand deposit for that amount in exchange for its promissory note (IOU) .As a result of this single transaction:
A) the supply of money is increased by $5,000.
B) the supply of money declines by the amount of the loan.
C) a claim has been "demonetized."
D) the Metro Bank acquires reserves from other banks.
Correct Answer:
Verified
Q159: A chartered bank sells a $10,000 government
Q160: The following balance sheet shows the assets
Q161: Refer to the information below.The maximum amount
Q162: Assume that Smith deposits $600 in currency
Q163: The following is a consolidated balance sheet
Q165: The following is a consolidated balance sheet
Q166: The relative importance of various asset items
Q167: Henry Trudeau deposits $2,000 in currency in
Q168: Individual chartered banks are limited in their
Q169: The multiple by which the chartered banking
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents