Suppose Jason takes $150 he had in his wallet and deposits it into his checking account.The immediate result of this transaction is that M1
A) Increases by $150 and M2 remains the same.
B) Decreases by $150 and M2 remains the same.
C) And M2 do not change.
D) Remains the same and M2 increases by $150.
Correct Answer:
Verified
Q35: Suppose Oscar withdraws $100 from his checking
Q36: Currency in circulation is included in
A)M1 only.
B)M2
Q37: One of the essential functions a bank
Q38: Which of the following appears in M2
Q39: Deposit creation occurs when
A)A bank lends money.
B)A
Q41: Initially a bank has a required reserve
Q42: Which of the following sets the legal
Q43: Suppose a bank has $500,000 in deposits
Q44: Suppose a bank has $160,000 in deposits
Q45: A single bank with $20,000 of reserves
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