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 moneyaffect 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 fallClear my choice

M1, M2, M3, are measures of the money supply.

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: O a. M2 would increase and M2+ would fall. O b. M2 would increase 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

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: O a. M2 would increase and M2+ would fall. O b. M2 would increase 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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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QUESTION 4 Peter withdraws $5000 from his savings account. Then he deposits $4000 in his checking account and puts the remaining $1000 in a safe box in his house. What is the overall effect of these actions on M1 and M2? O A. M1 rises by $5000, M2 falls by $5000 O B. M1 is unchanged, M2 is unchanged O C. M1 rises by $5000, M2 is unchanged O D. M1 is unchanged, M2 falls by $5000
Sarafina withdraws $450 from her saving account and places the money in her wallet. This transaction will Select one: O a. not change M1 and decrease M2. Ob. increase M1 and not change M2. OC. increase both M1 and M2. O d. decrease both M1 and M2. Next
An increase in 1 billion dollars in savings in the economy would result in an increase in M1 only O an increase in M1 and no change in M2 O an increase in M1 and M2 O an increase in M2 only
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 O decrease M1 by $5 and increase M2 by $5
K nunn Suppose Shanna withdraws $7,500 from her money-market mutual fund and deposits this money into her son's chequing account at a chartered bank. Then OA both M2 and M2+ will decrease by $7,500. OB. the values of M2 and M2+ will remain unchanged. OC. both M2 and M2+ will increase by $7,500. OD. M2 will decrease by $7,500, but M2+ will increase by $7,500. OE M2 will increase by $7,500, and the value of M2+ will stay the same.
Checking account balances are included in Select one: O a. neither M1 nor M2. O b. both M1 and M2. O c. M1 only. O d. M2 only. Clear my choice
Question 12 If you withdraw cash (currency), for AED 750,000 from your small time-deposit account: O a. M1 decreases by AED 750,000 and M2 decreases by AED 750,000 Ob. M1 increases by AED 750,000 and M2 increases by AED 750,000 O. M1 increases by AED 750,000 and M2 stays the same d. M1 and M2 stay the same
Suppose the MB is $100 bilion, deaired reserves are 10% and the curreney-deposit ratio is 10% (anks hold no exces reerves in this example). a) What is the money supply? O n00 bilon O $1000 bilion 5500 bion none on the atove
Suppose that a bank with no excess reserves receives a deposit into a checking account of $8,000 in currency. If the required reserve ratio is 0.20, what is the maximum amount that the bank can lend out? Select one: OA $1,600 O B. $6,400 OC $8,000 O D. $40,000
If the Federal Reserve decided to include virtual money like bitcoins in its measure of the money supply, what would be the effect on M1 or M2? O A. M2 would rise but M1 would remain constant. B. M1 would rise and M2 would remain constant. C. M1 would fall. O D. M1 would rise.
If a bank uses $100 of excess reserves to make a new loan when the reserve ratio is 25 percent, what happens to the money supply in the very short term? O a. It decreases by $100. O b. It increases by $25. O C. It decreases by $25. O d. It increases by $100. Show Transcribed Text Suppose a bank has $200,000 in deposits and $150,000 in loans. What is its reserve ratio? O a. 1 percent O b. 5 percent O C. 10 percent O d. 25 percent Show Transcribed Text Which list ranks the Bank of Canada's monetary policy tools from most to least frequently used? O a. bank rate changes; open-market transactions; reserve requirement changes O b. bank rate changes; reserve requirement changes; open-market transactions O c. open-market transactions; bank rate changes; reserve requirement changes O d. open-market transactions; reserve requirement changes; bank rate changes
Robert needs to decide between buying a slate pool table for $1,800 or being able to go on a Canadian vacation for $1,000 and still having enough left over to buy a nonslate pool table for $800. Robert opts for the nonslate pool table and the Canadian vacation. Robert has used money in what ways in making his decision? O A. Medium of exchange and a standard unit of account. O B. Store of value and a standard unit of account. OC. Medium of exchange and a method to decrease deferred payments. O D. Medium of exchange and a store of value.