M2 includes M1 and short term time deposits. So there is no change in M2 but M1 increases by 2000.
M1 increases by $2000 and there is no change in M2.
2. Multiple Choice Question #2 Sara withdraws $2,000 from her small time deposit account at Bank...
Incorrect Question 21 0/1 pts Lulu withdraws $100 cash from her deposit account at Mid First bank (Assume Mid First had the funds in excess reserve). The immediate result is M1_ and M2 o increases/decreases o increases/does not change O does not change/does not change O decreases/increases decreases/does not change
Jane currently has $5,100 in her savings account and $2,000 in her checking account at the local bank. Instructions: Use a positive number to represent an increase and a negative number to represent a decrease. a. Suppose she withdraws $350 in cash from her savings account. By what dollar amount does the country's money supply (M1 and M2) change as a result of Jane's actions? Change in M1: $____ Change in M2: $____ b. Now suppose instead that Jane withdraws...
Jane currently has $5,700 in her savings account and $2,000 in her checking account at the local bank. Instructions: Use a positive number to represent an increase and a negative number to represent a decrease. a. Suppose she withdraws $350 in cash from her savings account. By what dollar amount does the country's money supply (M1 and M2) change as a result of Jane's actions?b. Now suppose instead that Jane withdraws $350 from her checking account and uses $190 of this money to pay her federal...
2. Monica transfers $10,000 from her savings account at the Bank of Alaska to her money market fund. What is the immediate change in M1 and M2? Show your work. Formula Calculation Answer Question 3 0.17 pts 2. When Monica transfers $10,000 from her savings account to her money market account, the immediate change in M1 is: O M1 increases by $10,000. o M1 decreases by $10,000. O M1 only increases by $5,000 O M1 does not change.
3. Terry takes $100 from his checking account and deposits the $100 in his savings account. What is the immediate change in M1 and M2? Show your work Formula Calculation Answer Question 5 0.17 pts 3. When Terry takes $100 from his checking account and deposits the $100 in his savings account, the immediate change in M1 is O M1 increases by $100 O M1 decreases by $100 O M1only decreases by $50 O M1 does not change.
If Mrs. Ethridge moves $3,000 from her savings account into her checking account: M1 stays the same, M2 decreases, and the system becomes less liquid. Ml increases, M2 decreases, and the system becomes more liquid. M1 increases, M2 stays the same, and the system becomes more liquid. Mlincreases, M2 increases, and the system becomes less liquid. M2 includes M1 plus all of the following except: savings deposits. money market accounts. U.S. Treasury Bonds small-denomination time deposits. Reserve requirement on commercial...
If Jammie withdraws $1 billion from her checking account at Chase Bank today, will the value of money supply increase or decrease?
Say I move $100 from my savings account to my checking account. Which of the following is true? O M1 increases while M2 decreases M1 increases while M2 stays the same O M1 and M2 both increase M1 and M2 both decrease Question 17 (12 points) Which of the below was most responsible for the virtual elimination of bank runs in the US? lower discount rates FDIC deposit insurance lower reserve requirements deregulation of the banking sector
Question 9 (1 point) Which of the following is not considered a function of money? Question 9 options: it facilitates exchange it acts as a means of payment it can be held and exchanged for future goods and services it allows banks to lend out funds all of the above are functions of money Question 10 (1 point) Suppose that I find out from a L.L. Bean catalogue that a sweater costs $45. In this case, money is serving as...
1.)The ____________ is the sum of currency and reserve deposits, the monetary _________ of the central bank A.)money stock; assets B.)money stock; liabilities C.)monetary base; liabilities D.)monetary base; assets 2.)Time deposits are ______ liquid than savings deposits and typically earn a _________ interest rate than savings deposits. A.)less; higher B.)more; higher C.)more; lower D.)less; lower 3.)If banks must hold $2 in reserves for each $10 in deposits, and the public decides to hold $3 in currency for each $10 in...