John takes $100 of currency from his wallet and deposits it into his checking account. If the bank adds the entire $100 to reserves, the money supply , but if the bank lends out some of the $100, the money supply .

John takes $100 of currency from his wallet and deposits it into his checking account. If the bank adds the entire $100 to reserves, the money supply WILL NOT CHANGE, but if the bank lends out some of the $100, the money supply WILL INCREASE.

Explanation:

Any monetary injection to the banking system will increase the money supply only if the banking system (the whole set of banks) lends the money. The total effect is calculated by the increase in money x the money multiplier. The money multiplier = 1 / required reserves.

If the bank does not lend the money, then the money supply will not change.

answer; i believe the correct answer is (a) purchase of treasury stock;

so i don't know what video you're talking about, but here's some stuff steve jobs gave as advice.

- love what you do.

- the worst thing that could happen might turn out to be the best thing that could happen.

- follow your heart and trust it knows where it's going.