l makes a deposit into her savings account at the local bank with $100 in cash. As a result of this transaction, A. M1 will decrease by $100. B. both M1 and M2 will increase by $100. C. M2 will increase by $100. D. Both B and C are correc

l makes a deposit into her savings account at the local bank with $100 in cash. As a result of this transaction, A. M1 will decrease by $100. B. both M1 and M2 will increase by $100. C. M2 will increase by $100. D. Both B and C are correc

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter27: Money And Banking

Section: Chapter Questions

Problem 3SCQ: If you are out shopping for clothes and books, what is easiest and most convenient for you to spend:...

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ill makes a deposit into her savings account at the local bank with $100 in cash. As a result of this transaction, A. M1 will decrease by $100. B. both M1 and M2 will increase by $100. C. M2 will increase by $100. D. Both B and C are correct.

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If you are out shopping for clothes and books, what is easiest and most convenient for you to spend: M1 or M2? Explain your answer.
If you take 100 out of your piggy bank and deposit it in your checking account, how did M1 change? Did M2 change?
Question 2 Jaime transfers $2,500 from his checking account to his savings account. This transaction will Select one: a. decrease both M1 and M2. b. increase both M1 and M2. C. decrease M1 and not change M2. d. not change M1 and decrease M2.
John Antonio transfers $5000 from his checking account to his savings account. How are M1 and M2 affected by this decision? a.M1 increases and M2 decreases b.M1 and M2 remain the same c.M1 decreases and M1 increases d.M1 increases and M2 increases e.M1 decreases and M2 decreases
John transfers $1000 from his checking account to his saving. This transaction will a. Decrease both m1 and m2 b. Not change m1 and decrease m2 c. Decrease m1 and not change m2 d. increase both m1 and m2
5. Joseph transfers $1000 from his money market fund to his checking account. This transaction will: decrease M2 and increase M1. increase M1, but leave M2 unchanged. decrease M1 and increase M2. decrease both M1 and M2.
7. John transfers $150 from his money market fund to his checking account. This transaction will: decrease M2 and increase M1. increase M1, but leave M2 unchanged. decrease M1 and increase M2. decrease both M1 and M2.
13. Rashad and Brianna decide to go on a vacation. As a result, they withdraw $5,000 from their savings account to purchase $5,000 worth of traveler's checks. As a result of these changes, a. M1 increases by $5,000 and M2 decreases by $5,000. b. M1 increases by $5,000 and M2 stays the same. c. M1 and M2 stay the same. d. M1 decreases by $5,000 and M2 increases by $5,000. will
Sarafina withdraws $450 from her saving account and places the money in her wallet. This transaction will Select one: O a. not change M1 and decrease M2. Ob. increase M1 and not change M2. OC. increase both M1 and M2. O d. decrease both M1 and M2. Next
2. Determine whether each of the following is included in both M1 and M2 or M2 only: a. a Connecticut quarter b. a savings account at a local savings bank c. a share draft account at a credit union d. money market deposit accounts e. American Express travelers' checks
When a person takes P5,000 out of his checking account and puts it into a money market deposit account, A. M1 falls by P5,000, M2 is unchanged. B. M1 falls by P5,000, M2 rises by P5,000. C. M1 is unchanged, M2 rises by P5,000. D. M1 is unchanged, M2 is unchanged
When our children were young, we saved their personal funds like cash birthday gifts in savings accounts at our local bank. These funds were counted as: A. Neither M1 nor M2 money B. M1 money but not M2 money C. M2 money but not M1 money D. Both M1 and M2 money