Question:

Economic-math banking question thank you?

by Guest66701  |  earlier

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Jane takes $1,000 out of her cookie jar and deposits it into Bank A. Initially, the money supply has

changed in magnitude.

changed in composition.

not changed in magnitude.

not changed in composition.

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  1. Both changed in composition. and

    not changed in magnitude.

    Currency with the public got reduced by $1000 and checkable deposits increased by$1000. Magnitude on money supply renmains same but composition changed in favour of deposits.

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