When cash or coins are deposited in a transactions account at a bank,the size of M1 changes.

Name: When cash or coins are deposited in a transactions account at a bank,the size of M1 changes.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Depositing cash or coins into a transaction account does not change the size of M1 because M1 includes both cash in circulation and deposits in checking accounts, so moving money from one component of M1 to another does not alter the total amount of M1.

When Cash or Coins Are Deposited in a Transactions Account