After these transactions, the supply of money has:
a. increased by $2,100
b. increased by $3,300
c. increased by $5,400
d. decreased by $3,300
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May 26th, 2009 at 3:34 am
the bank had released a loan of $ 5,400 with net proceeds of $ 5,300 after deducting advance interest of $100. therefore, cash inflow was $ 2,000 and cash outflow was $ 5,300 or a decrease of $ 3,300.