5
QuizMultiple Choice

Banking and Financial Institutions

Question 5 • TX-Personal Financial Literacy and Economics

What is the money supply of the United States?

Answer
A
the total amount of money in the US economy
B
the sum of all deposits being held by US banks
C
the profits made by banks from the interest payment on loans
D
the total amount of money deposited within the central bank

Explanation

The money supply is the total amount of money available in the U.S. economy at a given time. It includes cash and certain types of bank deposits, not just deposits held by banks or at the central bank. Therefore, the correct choice is “the total amount of money in the US economy.”

AI-written and checked against the verified answer.

Previous
Next