Milly Miser removes $250,000 from her mattress and opens a checking account.This single transaction immediately increases the money supply by
A)$250,000.
B)$50,000.
C)$0.
D)−$250,000.

Name: Milly Miser removes $250,000 from her mattress and opens a checking account.This single transaction immediately increases the money supply by A)$250,000. B)$50,000. C)$0. D)−$250,000.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The money supply does not change because the $250,000 was already part of the money supply, just not in the banking system.

Milly Miser Removes $250,000 from Her Mattress and Opens a Checking