22. Joe Rogers deposits $200 in currency in his checking account at a bank. This

ID: 1187526 • Letter: 2

Question

deposit is treated as:

A. A subtraction of $200 from the money supply because the $200 in currency is no

longer in circulation

B. An addition of $200 to the money supply because of the creation of a checkable

deposit of $200

C. No change in the money supply because the $200 in currency has been

converted to a $200 increase in checkable deposits

D. An addition of $200 to the money supply because the bank holds $200 in

currency and the checking account has been increased by $200

C. No change in the money supply because the $200 in currency has been converted to a $200 increase in checkable deposits

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