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

Q: Assume that there is a 20 percent required reserve ratio and the public deposits $10 million in the…

A: Given information: Required reserve ratio = 20% Public deposits = $10 million

Q: Give three specific examples each of M1, M2, and M3. For instance, under M1 is coins and currency…

A: Money: It refers to the medium of exchange that helps people to buy goods and services. The money is…

Q: Ali transfers 1000 dollars from his checking account to his savings account. This transaction will…

A: For the production and consumption of goods, economic agents have derived a barter system. In the…

Q: Identify a difference between fiat currencies and cryptocurrencies. O Unlike cryptocurrencies, fiat…

A: In order to exchange it for goods and services, currency must be something that is commonly…

Q: When a person takes P5,000 out of his checking account and puts it into a money market deposit…

A: There are four measures of money supply, M1 , M2 , M3 and M4. All of these are arranged in ascending…

Q: The functions of money are credit cards, checking accounts, currency, and coins. O medium of…

A: Prices are considered to be flexible in the classical economy

Q: Professor Rush withdraws $20 from his checking account at Bank of Gainesville, keeps $15 in cash,…

A: M2 Includes M2 so there is no change in M2.

Q: If the Federal Reserve decide to “create its own digital currency,” which of the following measures…

A: answer is given below

Q: Morgan D. decides to go on a vacation for which he withdraws $2,500 from his savings account (NOT…

A: Answer: A saving account is a part of M2. If $2,500 is withdrawn from the savings account then M2…

Q: Find the money value of M2 if the M1 is given as 3220 and the savings deposit with post office…

A: Generally in the given question The value of M1 is stated as = 3220 Post saving banks = 2000 Money…

Q: Distinguish between M1 and M2.  What are near monies?

A: The money supply is the entire amount of money in circulation (cash, coins, and bank account…

Q: 1) Suppose your bank raises its minimum-balance requirement for free checking on checking accounts…

A: Question 1:Option a) M1 rises by $500, M2 falls by $500: This option is incorrect because it states…

Q: Joseph transfers $1000 from his money market fund to his checking account. This     transaction…

A: The money supply is the total amount of currency and other liquid assets in a country's economy on a…

Q: Which of the following is true? Multiple Choice M1 must always be greater than M2. M2 must always be…

A: In an economy, M1 money supply is the narrow money supply form as it only include liquid and near…

Q: When you pay your tuition fees by transferring money from your chequing account at TD bank to the…

A: In an economy, M2 money supply include the liquid money as well as near money instruments like…

Q: Identify whether each example in the following table belongs in M1, M2, or both. If an example…

A: M1 money supply is considered as the most liquid form of money in the economy such as cash and…

Q: Can I ask how do you calculate M1 and M2 ? Thanks

A: Money supply refers to the amount of currency in the form of coins, paper notes, or demand deposits…

Q: Which of the following terms is used to describe the proportion of deposits that banks are legally…

A: Central Bank give instruction to the commercial bank to keep a certain percentage of their deposit…

Q: Use the following table on the components of money in a hypothetical economy to do exercises 11 and…

A: Money supply is categorize into four group in United States, M1, M2, M3 and M4 which are called…

Q: Money creating multiplicator equals 3, so it means that: Select one alternative: Change in…

A: Money supply is the quantity of money available in the economy at the particular point of time. It…

Q: If you are out shopping for clothes and books, what is easiest and most convenient for you to spend:…

A: The money supply represents the total stock of money that is available in an economy. It can be…

Q: The increase in saving account deposits would Select one: a. increase M1. b. have no effect on M2.…

A: Money supply refers to all the currency and liquid assets in an economy at a given point in time.…

Q: Mira deposited $10,000 in a saving account at “B" bank on September 2018. On November 2018 she…

A: M1 = Checking account + Currency = 9000 + 1000 = 10000 M2 = M1 + Saving account = 10000 + 0 = 10000…

Q: Q.9 What is the difference between M1 and M2 definition of the money supply?

A:

Q: Suppose the commercial banking system has received a new deposit of $200 million. With a required…

A: Let's get through with the given information:- New deposit in the bank = $200 million Required…

Q: Question 12 If you withdraw cash (currency), for AED 750,000 from your small time-deposit account: O…

A: Money supply represents the total stock of money available in an economy. It includes coins, paper…

Q: Define M1 and M2. Which is bigger?

A: M1 money supply incorporates those monies that are extremely fluid like money, checkable (request)…

Q: Assume that there are 2 chartered banks and their T-accounts are below. Suppose that there are…

A: Given information There are 2 banks Bank A and Bank B Initial deposit in Bank A=$680000 Amandeep…

Q: Q12. The following is hypothetical financial information about the US economy. What is M1 and M2?…

A: The currency and cash in the economy are regulated by the central bank. The supply of money includes…

Q: Decisions for Tomorrow How much does M1 and M2 change in the following situations? a. $300 is…

A: In an economy, M1 money supply includes all the monetary instruments that are readily available to…

Q: am. 102.

A: The table presents information on various financial items and their corresponding values in billions…

Q: Big bucks bank Assets…

A: A loan is a financial transaction in which one party (the lender) provides money or assets to…

Q: If you have kept savings in a retail money market fund, and you withdraw funds that are then…

A: There are four measures of money supply M1 , M2 ,M3 & M4 . First two are called narrow money and…

Q: Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both,…

A: The most liquid sorts of money are included in M1, the narrowest measure of the money supply. Highly…

Q: Suppose Shanna withdraws $7,500 from her money-market mutual fund and deposits this money into her…

A: M1 consists of currency plus checking deposits. M2 consists of M1 plus the personal savings deposit,…

Q: If Bank A's total reserves are $10.8 million, its excess reserves are $4.60 million, and the…

A: Given that,  Bank A' s total reserves = $10.8 million  Excess of reserves = $4.60 million  Required…

Q: Calculate the value of M2 if M1 is $140,000 and the value of savings with post office saving bank is…

A: The given information is as follows:- M1 = $140,000 million Savings with post office Savings bank =…

Q: Scenario M1 M2 Monetary base 19. Marc transfers $500 from his savings to his checking…

A: Monetary base, M1 and M2 are the standard measures of money supply. Monetary base is the sum of…

Q: If Brent uses his credit card to purchase a new television, then the money to pay the retailer is…

A: The money is form of financial assets that allows transactions of services and goods in an economy.…

Q: Suppose you transfer the balance of your savings account at your credit union to your chequing…

A: M1, M2, M3, are measures of the money supply.

Q: James purchases a $20,000 6-month certificate of deposit. Is this counted in M1 only, M2 only, M1…

A: Answer: Certificate of deposits: it refers to the time deposit. It is a financial instrument that is…