If Debra finds $100 on the street and then deposits it into her bank checking account, the immediate effect on the money supply is
A) a $100 increase
B) a $100 decrease
C) a $200 increase
D) none

Question

Quizplus · Accepted Answer

Finding and depositing money does not change the total amount of money in the economy; it merely moves the money from one place (the street) to another (the bank).

If Debra Finds $100 on the Street and Then Deposits