Recorded on the banks balance sheet

Assignment Help Business Economics

Reference no: EM13974963

Dave Macy decides to sell his gold jewelry and deposits the cash at his local bank. How would this be recorded on the bank’s balance sheet?

a. The money supply will fall when the gold is sold but will increase once the deposit is made.

b. The money supply will rise because consumers have more cash.

c. The money supply will fall because consumers have less gold.

d. The money supply will rise when the gold is sold but then fall once the deposit is made.

e. There will be no change to the money supply

Reference no: EM13974963

Questions Cloud

Identify and interpret the p-value for the test : Identify and interpret the p-value for the test. Source: Andy Gardiner, "NCAA on Guard for ‘Rolled' Bats," USA Today, June 17, 2009, p. 8C.

What government expenditures should be excluded from gdp : Are all expenditures of a government included in the calculation of GDP for that nation? Why or why not? If not, what government expenditures should be excluded from GDP?

GDP Effect of Fiscal and Monetary Policy : GDP depends partly upon Investment and consumption spending. If the economy is in a persistent recession what can the Congress and Administration do to improve the GDP? What can the Federal Reserve do to improve the economy is Consumption and Investm..

Would the sale of cotton from a cotton mill to the shirt : Would the sale of cotton from a cotton mill to the shirt manufacturer be included in the calculation of GDP? Why or why not?

Recorded on the banks balance sheet : Dave Macy decides to sell his gold jewelry and deposits the cash at his local bank. How would this be recorded on the bank’s balance sheet?

Market-power and market prices : Since 2005, the production of oil in the USA has increased dramatically The price of oil has fallen from $70 per barrel to $45 per barrel. This additional production has been very expensive, with operating cost around $55 per barrel to produce. From ..

Income and wealth distribution : How does income and wealth distribution impact Consumption? What happens to GDP when income/wealth distribution becomes more concentrated? What ideas do you have for making income/wealth distribution more equal?

Outline the consumer purchase decision process : Outline the consumer purchase decision process you used to select your college or university. Discuss your perceived problem, information sources used, awareness set, evaluative criteria, consideration set, and how happy you are with your decision.

How has median income of women compared to men : How has the median income of women compared to men changed since 1980? What do you think is the cause? Women’s income as a fraction of men’s income has fallen because men are still the majority of workers in high-paying jobs, such as management, cons..

User Account

All Pages