Multiple Choice
Henry Trudeau 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.This loan alone will:
A) increase the supply of money by $2,100.
B) increase the supply of money by $3,300.
C) increase the supply of money by $5,400.
D) decrease the supply of money by $3,300.
Correct Answer:
Verified
Correct Answer:
Verified
Q27: Balance sheets always balance because assets must
Q28: When chartered banks retire outstanding loans, the
Q29: Which of the following are all assets
Q30: The amount of money reported as M2:<br>A)is
Q31: A chartered bank has demand-deposit liabilities of
Q33: Demand deposits are also called:<br>A)chequing accounts.<br>B)high-powered money.<br>C)savings
Q34: If you are estimating your total expenses
Q35: A cheque for $10,000 drawn on Bank
Q36: Refer to the information below.The M1 definition
Q37: Banks create money when they:<br>A)add to their