Solved

Joe Deposits $200 in Currency into His Checking Account at a Bank

Question 134

Multiple Choice

Joe deposits $200 in currency into his checking account at a bank. This deposit is treated as


A) a subtraction of $200 from the money supply because the $200 in currency is no longer in circulation.
B) an addition of $200 to the money supply because of the creation of a checkable deposit of $200.
C) an addition of $200 to the money supply because the bank holds $200 in currency and the checking account has been increased by $200.
D) no change in the money supply because the $200 in currency has been converted to a $200 increase in checkable deposits.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents