If a bank customer deposits $100 in cash, and the bank lends $90 of that deposit to another customer by crediting $90 to her account:
A. the money supply has increased by $190.
B. the money supply has increased by $90.
C. the money supply has decreased by $10.
D. the money supply has not changed.
Ans: B. the money supply has increased by $90.
Economics
You might also like to view...
Which of the following factors is likely to lead to an increase in the quantity demanded of pens?
A) A fall in the price of paper B) A fall in the incomes of all consumers C) A rise in the incomes of all consumers D) A fall in the price of pens
Economics
Antitrust laws allow the government to
a. collect revenues through the antitrust tax. b. break up companies. c. purchase privately-held companies through eminent domain. d. All of the above are correct.
Economics