In which of the following situations will there be an increase in the money supply?
A) Rick keeps $10,000, which he has won in a lottery, in his bank.
B) Callie gets a loan of $30,000 from her bank to buy a car.
C) Roxanne buys a bike for which she pays $10,000 in cash.
D) Dominik lends $2,000 to his friend.
E) Ursula buys a used sofa set from the yard sale for which she pays $1,000 in cash.
Correct Answer:
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Q40: Nontransaction deposits:
A)are near money assets.
B)are the money
Q41: Which of the following is true of
Q42: A decrease in currency in circulation combined
Q43: Money market mutual funds:
A)are highly liquid assets.
B)defer
Q44: A bank's capital is:
A)the value of all
Q46: Which of the following generates profits for
Q47: Banks create money by:
A)making loans.
B)offering bonds at
Q48: The ease with which one asset can
Q49: Other things constant, a decrease in credit
Q50: M1 includes:
A)gold.
B)cash, checking account balances, and travelers'
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