commercial bank receives a currency deposit, cash is taken out of circulation. Thus, there will be a decrease of money supply.” State whether true or false and explain why using the concept of
commercial bank receives a currency deposit, cash is taken out of circulation. Thus, there will be a decrease of money supply.” State whether true or false and explain why using the concept of
Chapter25: Money Creation
Section: Chapter Questions
Problem 8SQP
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“If a commercial bank receives a currency deposit, cash is taken out of circulation. Thus, there will
be a decrease of money supply.” State whether true or false and explain why using the concept of money supply and money multipier.
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