When currency is deposited in a comercial bank, does cash go out of circulation?

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2006-11-15 16:15:13 · 3 answers · asked by Jessica R 1 in Social Science ➔ Economics

Banks use your cash to make loans to other people, thus cash goes back into circulation.

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2006-11-15 17:12:04 · answer #1 · answered by Zak 5 · 0⤊ 0⤋

No the bank makes thier own purchases and the money continues its circulation

good question

2006-11-15 16:20:33 · answer #2 · answered by whay i lost my ?s 6 · 0⤊ 0⤋

yes it does!

2006-11-15 17:56:27 · answer #3 · answered by Charu Chandra Goel 5 · 0⤊ 0⤋