2) For each of the following think about whether the portion of assets the person has...
2) For each of the following think about whether the portion of assets the person has in both M1 and M2 is going up, down, or staying the same. Provide a brief explanation (i.e. for each part you should state what happens to M1 and what happens to M2).
a) Emily withdraws funds from her checking account and deposits them into a money market mutual fund.
b) Emilia withdraws funds from her checking account and uses them to buy shares of stock.
c) Emma sells some artwork and deposits the proceeds into her checking account. d) Emerald takes some cash from her pocket and deposits it into her saving account.
Homework Answers
M2 is a calculation of the money supply that includes all elements ofM1 as well as "near money." M1includes cash and checking deposits, while near money refers to savings deposits, money market securities, mutual funds and other time deposits. Analysing the above characteristics we can say
a. M1 going down M2 is rising
b. M1 falling M2 rising
c. M1 rising no effect on M2
d. M1 falling M2 rising
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2) For each of the following think about whether the portion of
assets the person has...
2) For each of the following think about whether the portion of assets the person has...
2) For each of the following think about whether the portion of assets the person has in both M1 and M2 is going up, down, or staying the same. Provide a brief explanation (i.e. for each part you should state what happens to MI and what happens to M2) Emily withdraws funds from her checking account and deposits them into a money market mutual fund. b) Emilia withdraws funds from her checking account and uses them to buy shares of...
Please show all work Monetary aggregates II. For each of the following transactions identify by how...
Please show all work
Monetary aggregates II. For each of the following transactions identify by how much M1 and M2 change. (a) (3 points) You receive a check for $2,500 from your employer. You deposit the check into your checking account. You then withdraw $500 as cash and transfer $1,000 into your savings account, and use the remainder to purchase shares of a stock market mutual fund (b) (3 points) Umut has $4 million of funds in a savings account....
1 and 2 please 1. (2.5 points) For the following, say whether each is included in M1: a. currency b. credit card fun...
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2) For each of the following think about whether the portion of assets the person has in both M1 and M2 is going up, down, or staying the same. Provide a brief explanation (i.e. for each part you should state what happens to MI and what happens to M2) Emily withdraws funds from her checking account and deposits them into a money market mutual fund. b) Emilia withdraws funds from her checking account and uses them to buy shares of...
Please show all work
Monetary aggregates II. For each of the following transactions identify by how much M1 and M2 change. (a) (3 points) You receive a check for $2,500 from your employer. You deposit the check into your checking account. You then withdraw $500 as cash and transfer $1,000 into your savings account, and use the remainder to purchase shares of a stock market mutual fund (b) (3 points) Umut has $4 million of funds in a savings account....
1 and 2 please
1. (2.5 points) For the following, say whether each is included in M1: a. currency b. credit card funds available C. checking account balances d. savings account balances e. traveler's checks 2. (2.5 points) For the following, say whether each is included in M2: a. currency b. savings deposits in banks c. everything in M1 d. certificates of deposit worth $250,000 e. a time deposit worth $25,000
answer question 1,2 and 3
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