If you deposit $1,000 in cash in your checkable deposit at your bank,the quantity of M1 immediately
A)increases by $1,000.
B)decreases by $1,000.
C)increases by $2,000.
D)does not change in size.
E)changes,but more information about the required reserve ratio is necessary to determine the amount of the change.

Question

Quizplus · Accepted Answer

The Answer of If you deposit $1,000 in cash in your checkable deposit at your bank,the quantity of M1 immediately
A)increases by $1,000.
B)decreases by $1,000.
C)increases by $2,000.
D)does not change in size.
E)changes,but more information about the required reserve ratio is necessary to determine the amount of the change.

If You Deposit $1,000 in Cash in Your Checkable Deposit