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. O b. increase M1 and not change M2. O c. increase both M1 and M2. O d. decrease both M1 and M2.

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. O b. increase M1 and not change M2. O c. increase both M1 and M2. O d. decrease both M1 and M2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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.
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2 ill makes a deposit into her savings account at the local bank with $100 in cash. As a result of this transaction, A. M1 will decrease by $100. B. both M1 and M2 will increase by $100. C. M2 will increase by $100. D. Both B and C are correct.
If Bank A has $3.8 million in total deposits, $860,000 in total reserves, and faces a 12 percent reserve requirement, the amount of money that Bank A could initially create by loaning out their excess reserves is: O $100,000. O $385,000 $404,000 O $756,800 O $3,366,667
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.
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Pls help with below homework
If a bank gets $90 in new reserves from the Fed and the required-reserve ratio is 0.1, then the maximum amount by which total deposits in the economy can increase is O $900 O $90 O $9 O $80
Pls select the correct option and exlplain it.
29
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Suppose the required reserve ratio is 10% and a bank receives a $10 million deposit into a checking account. By how much will deposits change in the banking system? (assume that the banking system currently has no excess reserves) Select one: $100 million. O $90 million. $10 million. O $110 million. Clear my choice
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