Suppose your $1,000 certificate of deposit matures and you transfer the funds to your checking account. This causes
A) M1 to decrease by $1,000 and M2 to increase by $1,000.
B) M1 to increase by $1,000 and M2 to remain the same.
C) both M1 and M2 to increase by $1,000.
D) no change to either M1 or M2.
Correct Answer:
Verified
Q214: Which of the following is NOT included
Q215: For a small-denomination certificate of deposit to
Q216: The M2 measure of money is suggested
Q217: A transaction deposit is
A) a fiduciary monetary
Q218: Which of the following assets are counted
Q220: Which of the following is included in
Q221: Financial intermediation is best defined as the
Q222: How does the liquidity approach to measuring
Q223: Which of the following is NOT an
Q224: Financial intermediaries are institutions that
A) produce money
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