Wells Fargo Bank sells a $1,000 Treasury security to a securities dealer. The dealer pays for the security in cash which the bank adds to its vault cash. The total dollar value of the money supply has not changed by this transaction. Group of answer choices True False
Wells Fargo Bank sells a $1,000 Treasury security to a securities dealer. The dealer pays for the security in cash which the bank adds to its vault cash. The total dollar value of the money supply has not changed by this transaction. Group of answer choices True False
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Wells Fargo Bank sells a $1,000 Treasury security to a securities dealer. The dealer pays for the security in cash which the bank adds to its vault cash. The total dollar value of the money supply has not changed by this transaction.
Group of answer choices
True
False
Expert Solution
Step 1
Money Supply: - In an economy, the total value of money in circulation at a point in time is known as the money supply.
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