Question

pls do 35-40

35. When moving $500 from your checking account to your savings account this transaction will impact the M1 and M2 money supplies by a. decreasing the M1 by $500. The M2 will be unchanged. b. decreasing the M1 by $500 and increasing the M2 by $500. c. not affecting the M1. But the M2 will increase by $500. d. not affecting the M1 and M2. Both will be unchanged. 36. The funds that banks are required by law to hold in the form of either vault cash or deposits with the Federal Reserve Bank are called a. certificates of deposit. b. excess reserves. C. fractional reserves. d. required reserves. 37. Which of the following is primarily responsible for controlling the money supply in the United States? a. the Board of Governors of the Federal Reserve System b. the U.S. Congress c. the U.S. Treasury d. the Council of Economic Advisors 38. The major overall purpose of the Federal Reserve System is to a. keep the discount rate flexible. b. regulate the money supply and, thereby, provide a monetary climate that is in the best interest of the economy. C. insure the deposits of persons holding funds with banking institutions. d. regulate the levels of excess reserves held by member banking institutions. 39. In the USDA report, Rural Wealth Creation, resources such as formal organizations and informal associations and networks; represent ! a. social capital. b. political capital. c. human capital. d. cultural capital. 40. The economic concept of comparative advantage implies that each country should produce a good for global consumption if they a. have the lowest wages. b. have the most resources. C. can produce more of the good than any other nation. d. have the lowest opportunity cost (or are able to do the things at which they are best)

Answer 1

Solution :- 35

The Correct Answer is (A) that is Decreasing the M1 by $500. The M2 will be unchanged.

The Reason is that M1 does not include Saving but include checking accounts so if we transfer from Checking Account M1 reduces while M2 includes Savings Account and M1 therefore by transfer M1 decrease but saving increase this will create no change in M2

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