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MMLU-Pro / 7072 / What is the immediate effect on the money supply if Bank A re-ceives a deposit…

Problem

Answer published by the source. Consult the official source to check your work against its answer.

question

What is the immediate effect on the money supply if Bank A re-ceives a deposit of 1000incurrencyfromMr.Xandgrantsaloanof 1000 in currency from Mr. X and grants a loan of 500 to Mr. Y?
Plain-text mathematical notation (without MathML)
What is the immediate effect on the money supply if Bank A re-ceives a deposit of 1000incurrencyfromMr.Xandgrantsaloanof 500 to Mr. Y?
Original LaTeX notation
What is the immediate effect on the money supply if Bank A re-ceives a deposit of $ 1000 in currency from Mr. X and grants a loan of $ 500 to Mr. Y?

category

economics

options

  1. add $1000 to the money supply
  2. add $ 500 to the money supply
  3. no change in the money supply
  4. reduce $1000 from the money supply

src

stemez-Economics

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Source and history

Official source

initial import