If a bank makes a loan of $5,000, which is then withdrawn in cash and spent in another country, the money supply will not grow.

Name: If a bank makes a loan of $5,000, which is then withdrawn in cash and spent in another country, the money supply will not grow.
Brand: Quizplus
Rating: 4.9 (39 reviews)

Question

Quizplus · Accepted Answer

When the loan is withdrawn in cash and spent in another country, the money supply in the country where the loan was made will not grow because the money has left the country.

If a Bank Makes a Loan of $5,000, Which Is