The money supply has been increased by $25000.
Checkable deposit refers to the kind of an demand deposit in which the checks , draft or any kind of the security can be written or demanded. On the demand of the customer, the bank will provide the checks or draft will be provided.
In the case of any of the commercial bank whether private or public bank they buy government securities from another private company or investor, they generate money in the same way as a loan creates money.
Therefore, when a commercial bank buys a $25,000 government security from a securities dealer the money supply has been increased by $25000.
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