Professor Rush withdraws $20 from his checking account at Bank of Gainesville, keeps $15 in cash, and deposits the remainder in his savings account. These transactions O decrease M1 by $15 and do not change M2 O None of these answers is correct. O increase M1 by $20 and do not change M2 O increase M1 by $15 and decrease M2 by $15 decrease M1 by $5 and increase M2 by $5

Professor Rush withdraws $20 from his checking account at Bank of Gainesville, keeps $15 in cash, and deposits the remainder in his savings account. These transactions O decrease M1 by $15 and do not change M2 O None of these answers is correct. O increase M1 by $20 and do not change M2 O increase M1 by $15 and decrease M2 by $15 decrease M1 by $5 and increase M2 by $5

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter27: Money And Banking

Section: Chapter Questions

Problem 3SCQ: If you are out shopping for clothes and books, what is easiest and most convenient for you to spend:...

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Suppose you transfer the balance of your savings account at your credit union to your chequing account at your bank. How would this transfer of money affect M2 and M2+? Select one: M2 would increase and M2+ would fall. O b. M2 would inerease and M2+ would stay the same. Oc There would be no change in either M2 or M2+ d. Both M2 and M2+ would fall Clear my choice
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How would the bank enter the following into it's t-account? Dennis makes a $750 deposit at his local bank. The reserve ratio for his bank is 0.25. Click here for t- accounts. O 1) t-account a 2) t-account b 3) t-account c 4) t-account d Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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Corry has an income of $80,000 that he is willing to spend over a year. If his bank account's interest rate is 3.05% and the cost associated for him to visit the bank is $5.00. What is Corry's average money holding? O a. $488.00 O b. $2,560.74 O c. $5,000.00O O d. $16.00 O Type here to search 24
If Bank A's total reserves are $10.8 million, its excess reserves are $4.60 million, and the required reserve ratio is 4%, then Bank A's required reserves equal and its total deposits equal $6.2 million; $105 million $6.6 million; $165 million O $6.6 million; $270 million O $6.1 million; $122 million $6.2 million; $155 million