Assume the XYZ Company negotiates a loan for $100,000 from the Trusty Bank and takes out $10,000 in the form of cash,leaving the remainder in its account.What is the result?
A) The supply of money has increased by $100,000.
B) The supply of money has declined by $100,000.
C) The supply of money has increased by $10,000.
D) The supply of money has increased by $90,000.
E) The supply of money has not changed.
Correct Answer:
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