Suppose your bank lowers its minimum-balance requirement on personal chequing accounts by $500.You take $500 out of your personal chequing account and put it in a money market mutual fund account.What is the overall effect on M1 and M2?
A) M1 falls by $500,M2 rises by $500.
B) M1 is unchanged,M2 is unchanged.
C) M1 falls by $500,M2 is unchanged.
D) M1 is unchanged,M2 rises by $500.
Correct Answer:
Verified
Q2: Suppose you read in the paper that
Q3: Money's primary role in the economy comes
Q4: Which of the following statements about M1
Q5: Which of the following is NOT included
Q6: M2 does NOT include
A)Treasury bonds.
B)passbook savings accounts.
C)small-denomination
Q8: The following are all functions of money
Q11: Debit card
A)is money since it can be
Q12: Why do people keep currency in their
Q15: M2 includes
A)large-denomination time deposits.
B)institutional MMMFs.
C)commercial paper.
D)M1.
Q17: The use of money is more efficient
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents