1> Savings account and money market fund are both near money, so they are part of M2 but not part of M1.
So, there is no change in M1 or M2
2> D
Since there is no change in any component in M1 as explained in part 1, there is no change in M1
2. Monica transfers $10,000 from her savings account at the Bank of Alaska to her money...
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.
2. Multiple Choice Question #2 Sara withdraws $2,000 from her small time deposit account at Bank of America, keeps $400 in cash, and deposits the rest in her checking account at Citibank. What is the immediate change in M1 and M2? O M1 increases by $400 and M2 decreases by $400. O M1 and M2 increase by $2,000. O M1 increases by $2,000 and there is no change in M2. O M1 increases by $2,000 and M2 decreases by M2.
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...
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...
6) All else equal, if Jane transfers funds from her checking account to a stock market mutual fund she purchased then the amount of assets Jane holds as a) M1 decreases b) M2 decreases c) both a) and b) are correct. d) neither a) nor b) are correct. Why is C?
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
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
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...
If you go to the bank and withdrawal $100 from your savings account and put the currency in your pocket, M1 money will stay the same and M2 money will increase Both M1 and M2 money will increase M1 money will increase and M2 money will stay the same M1 money will decrease and M2 money will stay the same M1 money will stay the same and M2 money will decrease
Two friends decide to go on a vacation. They withdraw $2,500 from their savings account. As a result of this transfer by itself A. M1 decreases by $2,500 and M2 stays the same. B. M1 increases by $2,500 and M2 stays the same. C. M1 decreases by $2,500 and M2 decreases by $2,500. D. M1 increases by $2,500 and M2 decreases by $2,500.