Henry deposits $2,000 in currency in the First Street Bank. Later that same day Jane Harris negotiates a loan for $5,400 at the same bank. After these transactions, the supply of money has:
A) Increased by $2,100
B) Increased by $3,300
C) Increased by $5,400
D) Decreased by $3,300

Question

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The Answer of Henry deposits $2,000 in currency in the First Street Bank. Later that same day Jane Harris negotiates a loan for $5,400 at the same bank. After these transactions, the supply of money has:
A) Increased by $2,100
B) Increased by $3,300
C) Increased by $5,400
D) Decreased by $3,300

Henry Deposits $2,000 in Currency in the First Street Bank