Assume that Smith deposits $600 in currency into her checking account in the XYZ Bank.Later that same day Jones negotiates a loan for $1,200 at the same bank.In what direction and by what amount has the supply of money changed?

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The Answer of Assume that Smith deposits $600 in currency into her checking account in the XYZ Bank.Later that same day Jones negotiates a loan for $1,200 at the same bank.In what direction and by what amount has the supply of money changed?

Assume That Smith Deposits $600 in Currency into Her Checking