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If traveler’s checks were $500 higher and saving deposits were $1,000 higher, M1 would be?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Money, Banking And The Financial System

Section12.2: Defining The Money Supply

Problem 2ST

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If traveler’s checks were $500 higher and saving deposits were $1,000 higher, M1 would be?

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If you take $100 out of your piggy bank and deposit it in your checking account, how did M1 change? Did M2 change?
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Calculate M2 if M1 is $3600 million and the Savings deposit with post office Savings bank is $5000 million
Determine whether each of the following is included in both M1 and M2 or M2 only: a. a Connecticut quarter b. a savings account at a local savings bank c. a share draft account at a credit union d. money market deposit accounts e. American Express travelers’ checks
Calculate M2 if in the Economy is M1 is $10,000 million and Savings deposit with post office is $7700 million
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Question 2 Jaime transfers $2,500 from his checking account to his savings account. This transaction will Select one: a. decrease both M1 and M2. b. increase both M1 and M2. C. decrease M1 and not change M2. d. not change M1 and decrease M2.
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