Homework Answers
Ans.3.
checking account comes under M1(measure of money) , so if you take out money from the checking account which is $100, Hence this will decrease M1 by $100.
M1 = circulation of currency and coins + deposits (checkable) + traveler's checks
Checking Acoount ( M1 ) = $100
Withdrawal = $100
remaining balance in checking Account = 100 - 100 = 0
So, Correct Option is M1 decreases by $100.
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