QUESTION 19If an individual moves money from asavings account to a checking accountM1 increases and M2decreases.M1 increases and M2 stays thesame.M1 stays the same and M2stays the same.M1 stays the same and M2decreases

Introduction: A checking account is a deposit account that lets you withdraw and deposit in a bank.…

Answered: If an individual moves money from a…

Business

Economics

If an individual moves money from a savings account to a checking account M1 increases and M2 decreases.

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:...

See similar textbooks

Related questions

Q: Calculate the value of currency with public if M1 is $1,55,612 , demand deposits is 68,000 and other…

A: The information being given is as follows:- M1 = $1,55,612 Demand deposit = 68,000 Other deposit…

Q: The Federal Reserve measures the money supply using which of the following? A) Savings Accounts B)…

A: Money supply refers to all the currency and other liquid instruments in a country’s economy at a…

Q: The economy of Quarterville currently has a level of M1 equal to $49,000. If there are $38,000 worth…

A: Money supply is made up of M1, M2 ,M3 and M4.( Complete money that is in circulation in an economy.)…

Q: Calculate net time deposit with banks if M3 is $22,000 and M1 is $6500

A: The data presented in the question above:- M3 = $22,000 million M1 = $6500 million Net time deposit…

Q: When a person takes P5,000 out of his checking account and puts it into a money market deposit…

A: There are four measures of money supply, M1 , M2 , M3 and M4. All of these are arranged in ascending…

Q: Find the sum money of M4 when the M3 is $700 and the Total deposit with post saving banks are $800

A: Generally in the given question Value of M3= $700 And total deposit with post saving banks are =…

Q: If the reserve ratio was 20% and someone deposited an additional $8,000, what would be the maximum…

A: Reserve ratio = 20% Credit multiplier = 1/ RR = 1/20% = 100/20 = 5 Deposits = $8000 Total deposit…

Q: When our children were young, we saved their personal funds like cash birthday gifts in savings…

A: M1 is the measure of money which includes the following - M1 = Cash + Checking Deposits + Demand…

Q: Find the money value of M2 if the M1 is given as 3220 and the savings deposit with post office…

A: Generally in the given question The value of M1 is stated as = 3220 Post saving banks = 2000 Money…

Q: If M3 is $200 million and M1 is $88 million Find the value of net time deposit with banks

A: The information being given to us is as follows:- M3 = $200 million M1 = $88 million We need to…

Q: The economy of Quarterville currently has a level of M1 equal to $49.000. If there are $38,000 worth…

A: Savings deposits = $38000 Moneny market funds = $89000 Time deposits = $32000 M1 = $49000

Q: Given the following information, what are the values of M1 and M2? Small time deposits $650 billion…

A: M1, the most narrow definition of the money supply, includes coins and currency in circulation. It…

Q: Calculate M1 if M3 is $20,000 and net time deposit with banks is $17,000

A: The data presented in the question above is:- M3 = $20,000 Net time deposit with banks = $17,000 We…

Q: If you take $100 out of your piggy bank and deposit it in your checking account, how did M1 change?…

A: The money supply represents the total stock of money that is available in an economy. It can be…

Q: Calculate net time deposit with banks if M3 is $25,000 and M1 is $11,000

A: Money Supply: - In an economy, the total value of money in circulation at a point in time is known…

Q: Calculate the value of M2 given that the M1 measure of money supply is $85,000 and saving deposit…

A: The data presented in the question is:- M1 measure of money supply = $85,000 Savings deposit with…

Q: Will M2 increase if banks loan

A: The answer is: YES.

Q: Which of the following is not included in the definition of M2 Y money? A) official deposits B)…

A: M2 money supply is the form of money that include liquid money and near money that can be changed to…

Q: Suppose the National Bank of Commerce has excess reserves of $8000 and outstanding checkable…

A: Reserve ratio is the proportion of deposits that banks have to hold with themselves instead of…

Q: You take $300 you had kept under your mattress and deposit it in your bank account. Suppose this…

A: Money supply refers to the total money circulating in an economy during a period. The total…

Q: Jane Doe has the following assets: $100 in her wallet $800 in…

A: M1 includes:- 1) Coin and banknotes are forms of cash.2) Demand deposits.3) Traveler's cheques4)…

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

A: Money supply refers to the amount of money being circulated in an economy at a particular point of…

Q: total deposit with post office is $31,000 and M4 is $19,000 Calculate M3

A: M1 = Currency + Demand Deposits M2 = M1 + Savings deposits with Post Office savings banks M3 = M1 +…

Q: If you have kept savings in a retail money market fund, and you withdraw funds that are then…

A: There are four measures of money supply M1 , M2 ,M3 & M4 . First two are called narrow money and…

Q: Calculate M2 if M1 is $3600 million and the Savings deposit with post office Savings bank is $5000…

A: The data presented in the question above is:- M1 = $3600 million Savings deposit with post office…

Q: Which of the following statements is INCORRECT? (a) M1 consists of coins, notes and demand…

A: In macroeconomics, money is important as it is used to carry daily transactions and for making…

Q: The fastest growing money supply since 1970 has been ___________. Group of answer choices A. M1 B.…

A: Money supply: The money supply (or money stock) in macroeconomics refers to the total amount of…

Q: M1 includes currency, checkable deposits, and traveler's checks, but M2 does not include M1 in any…

A: False. M2 includes M1 along with savings and time deposits, money market funds and certificates of…

Q: The net time deposit with banks is $400 million and the M1 component of money supply is $870 million…

A: M3 is a measure of money supply that includes time deposits , money market funds and liquid assets…

Q: Calculate the value of M2 if M1 is $140,000 and the value of savings with post office saving bank is…

A: The given information is as follows:- M1 = $140,000 million Savings with post office Savings bank =…

Q: Does m2 , m1 or m3 include current deposit at bank ??

A: In macroeconomics, money is important as it is used to carry daily transactions and for making…

Q: Calculate M2 if in the Economy is M1 is $10,000 million and Savings deposit with post office is…

A: The information being given is:- M1 = $10,000 Savings deposit at post office = $7700 We have to…

Q: Which group in the federal goverment is responsible for counting M1 and M2 money amounts? A.…

A: The USDT or the Department of the Treasury is the national treasury of the government of the U. S.…

Q: Ms Lee deposited cash amounting RM5,000 in her Islamic term investment account. Demonstrate how will…

A: M1 is a measure of money supply which comprises of the money that is in circulation in the economy…

Q: John withdraws $ 100 from his checking account and deposits it in his savings account. What will be…

A: C stands for the money that is in circulation. Since john is firstly withdrawing and then depositing…

Q: Determine the size of the M1 money supply using the following information. Currency plus Traveler’s…

A: M1 Money Supply= Currency plus Traveler’s checks + Demand deposits + Other checkable deposits

Q: You sell $10,000 of money market mutual fund shares and deposit them in a checking account with a…

A: M1 is a narrower concept which includes currency in circulation ie the coins and notes with public…

Q: If the desired reserve ratio of a banking system is 10%, and there is a currency drain of 10%, what…

A: Money multiplier: - it is the ratio that shows the maximum amount of money that can be created with…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 32Deposits 205Loans 150 Securities 53Other $X Using the balance sheet above, find the level of required reserves for this bank if the required reserve ratio = 8%(Give answers to 2 decimal places as needed)
Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 44Deposits 255Loans 155 Securities 51Other $X Using the balance sheet above, find the level of excess reserves this bank is holding if the required reserve ratio = 6%(Give answers to 2 decimal places as needed)
R3 If an individual moves money from currency to a demand deposit account,A) M1 stays the same and M2 stays the same. B) M1 increases and M2 stays the same.C) M1 stays the same and M2 increases. D) M1 decreases and M2 stays the same.
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.
What does m1,m2 m3 include in detail ??
Choose correctly M1 or M2
If the bank at which you keep your checking account isowned by foreigners, should you worry that your depositsare less safe than if the bank were owned by Americans?
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
James purchases a $20,000 6-month certificate of deposit. Is this counted in M1 only, M2 only, M1 and M2, or neither? OA. Neither M1 nor M2. OB. M1 and M2. OC. M2 only. OD. M1 only.
Ali transfers 1000 dollars from his checking account to his savings account. This transactionwilla) decrease both M1 and M2.b) not change M1 and decrease M2.c) decrease M1 and not change M2.d) increase both M1 and M2.
When you open a savings account, you and your joint account holder will need these fouritems. Put a checkmark next to or highlight, in the image below, the items you knowyou/your parent/guardian already have and circle any items you would need to work onobtaining
7. The consumer's average money holdings decreasing with the time spent between bank withdrawals. A. True B. False Discuss ges ron