isabella takes $100 of currency from her wallet and deposits it into her checking account. if the bank adds the entire $100 to r

Question

aksik [14]

2 years ago

15

isabella takes $100 of currency from her wallet and deposits it into her checking account. if the bank adds the entire $100 to r

eserves, the money supply ________, but if the bank lends out some of the $100, the money supply ________.

Business

1 answer:

Tresset [83] · Answer 1 · 2023-02-24T20:26:20+03:00

Tresset [83]2 years ago

3 0

Isabella takes $100 of currency from her wallet and deposits it into her checking account. If the banks add the entire $100 to reserves, the money supply increases, but if the bank lends out some of the $100, the money supply decreases.