Final answer:
A withdrawal of cash will decrease the bank's checkable deposit liabilities but not change the total supply of money.
Step-by-step explanation:
A withdrawal of cash will decrease the bank's checkable deposit liabilities but not change the total supply of money.
When cash is withdrawn from a bank, the bank's checkable deposit liabilities decrease. These liabilities represent the amount of money that the bank owes to its depositors. However, the total supply of money in the economy remains unchanged because the withdrawn cash is still held by the individual and can still be used as a medium of exchange.