Question

WILL GIVE MEDAL

Is a bank more likely to increase or decrease the amount of money in circulation? Why?

Answer 1

A bank greatly increases the amount of money in circulation. It prints new money, which it is able to loan to new business and other individuals in need of loans.

A bank will increase the amount of money in circulation because it can help transfer money from people who want to save money to people who are going to spend it.

A bank has no effect on the amount of money in circulation. A bank does not print new money. A bank is also not permitted to dispose of old money.

A bank will decrease the amount

Answer 2

A bank will increase the amount of money in circulation because it can help transfer money from people who want to save money to people who are going to spend it.
Why?
Because when you put money in the bank, that doesn't go in a special vault just for you. It goes to other people who take money out of the bank to spend on every day things. If people were holding their money in the bank, and money wasn't being taken out. It would hurt our economy severely!
:) Hope you have a great day!