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Moderate

Mrs. Smith Deposits Cash

MACRO-2K3ZNJ

If the required reserve ratio is 100%, when Mrs. Smith makes a \$1000 deposit of cash previously kept at home, which of the following occurs?

For circulating cash (CC), demand deposits (DD), and the money supply (MS).

A

CC: NO Change
DD: + 1000
MS: +1000

B

CC: - 1000
DD: NO Change
MS: -1000

C

CC: -1000
DD: +1000
MS: NO Change

D

CC: +1000
DD: +1000
MS: +2000