Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 27, Problem 3MCQ
To determine
To explain:
The impact on M1 and M2 if Mr. R withdraws $500 from the savings account and keeps $100 as currency, and deposits $400 in the checking account.
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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 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
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
Chapter 27 Solutions
Foundations of Economics (8th Edition)
Ch. 27 - Prob. 1SPPACh. 27 - Prob. 2SPPACh. 27 - Prob. 3SPPACh. 27 - Prob. 4SPPACh. 27 - Prob. 5SPPACh. 27 - Prob. 6SPPACh. 27 - Prob. 7SPPACh. 27 - Prob. 8SPPACh. 27 - Prob. 9SPPACh. 27 - Prob. 10SPPA
Ch. 27 - Prob. 11SPPACh. 27 - Prob. 12SPPACh. 27 - Prob. 13SPPACh. 27 - Prob. 1IAPACh. 27 - Prob. 2IAPACh. 27 - Prob. 3IAPACh. 27 - Prob. 4IAPACh. 27 - Prob. 5IAPACh. 27 - Prob. 6IAPACh. 27 - Prob. 7IAPACh. 27 - Prob. 8IAPACh. 27 - Prob. 9IAPACh. 27 - Prob. 10IAPACh. 27 - Prob. 11IAPACh. 27 - Prob. 1MCQCh. 27 - Prob. 2MCQCh. 27 - Prob. 3MCQCh. 27 - Prob. 4MCQCh. 27 - Prob. 5MCQCh. 27 - Prob. 6MCQCh. 27 - Prob. 7MCQCh. 27 - Prob. 8MCQ
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Similar questions
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- 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. willarrow_forwardK Pedro takes $200 from his money market fund and deposits the $200 in his checking account. What is the immediate change in M1 and M2? A. M1 increases and M2 decreases by $200. B. M1 increases by $200 and M2 does not change. C. M1 does not change and M2 does not change. D. M1 decreases and M2 increases by $200. E. Both M1 and M2 decrease by $200.arrow_forward7. 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.arrow_forward
- If you take $100 out of your piggy bank and deposit it in your checking account, how did M1 change? Did M2 change?arrow_forwardCalculate M2 if in the Economy is M1 is $10,000 million and Savings deposit with post office is $7700 millionarrow_forwardJames purchases a $20,000 6-month certificate of deposit. Is this counted in M1 only, M2 only, M1 and M2, or neither? OA. Neither M1 nor M2. OB. M1 and M2. OC. M2 only. OD. M1 only.arrow_forward
- as the varlous components of M1 and M2. Calculate the value of M1 and M2. Item $billions Savings deposits Checking deposits Small time deposits 375 The value of M1 is $ billion. 225 270 The value of M2 is $ billion. Money market funds and other deposits 160 Currency and traveler's checks 130 Enter your answer in each of the answer boxes. MacBook Air DD F11 000 F10 吕0 888 F9 F7 F8 F6 F5 F4 esc F2 F3 F1 # ! 7 8 2 3 4 5 1 R Y Q W E tab K F G H A S D caps lock M 00 %24arrow_forwardThe table shows the amounts held as the various components of M1 and M2. Calculate the value of M1 and M2. Item $billions The value of M1 is $ Savings deposits Checking deposits Small time deposits billion. 375 225 The value of M2 is $ billion. 270 Money market funds and other deposits Currency and traveler's checks 160 130 Enter your answer in each of the answer boxes. MacBook Air DD DII F10 F9 80 888 F8 F7 F6 F5 F4 F3 esc F1 F2 * & @ 2# 2$ 7 8 4 5 6 1 2 3 E R Tarrow_forwardAli transfers 1000 dollars from his checking account to his savings account. This transactionwilla) 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.arrow_forward
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