Sam Black deposits the $5,000 in coins she had been storing between her couch cushions into her savings account at the bank.How would this be recorded on the bank's balance sheet?
A) There will be no initial change to the money supply.
B) The money supply will fall by $5,000 because the amount of currency would fall by $5,000.
C) The money supply will rise by $5,000 because the money is now in the banking system.
D) The money supply will fall by $5,000 when the coins are found but will increase once the deposit is made.
E) The money supply will rise by $5,000 when the coins are found but then fall once the deposit is made.
Correct Answer:
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