If you withdraw ` 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be

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CollectorBabu · Accepted Answer

Correct Answer: to leave it unchanged. Explanation Withdrawing money from the bank does not affect the money supply. When you withdraw money, currency outside banks increases while your checking balance decreases by the same amount. Hence, the aggregate money supply will be unchanged.

If you withdraw ` 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be

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