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If Ann Were to Convert Some of Her Checkable Deposits

Question 24

Multiple Choice

If Ann were to convert some of her checkable deposits into a certificate of deposit,which of the following changes would take place?


A) M1 would decrease and then increase; M2 would increase and then decrease.
B) There would be no changes to M1 or M2.
C) M1 would decrease; there would be no change in M2.
D) M1 would increase; M2 would increase.
E) M1 would decrease; M2 would decrease.

Correct Answer:

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