Joe deposits $200 in currency into his checking account at a bank. This deposit is treated as

A. an addition of $200 to the money supply because the bank holds $200 in currency and the checking account has been increased by $200.
B. an addition of $200 to the money supply because of the creation of a checkable deposit of $200.
C. a subtraction of $200 from the money supply because the $200 in currency is no longer in circulation.
D. no change in the money supply because the $200 in currency has been converted to a $200 increase in checkable deposits.


Answer: D

Economics

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