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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Explain what will happen to the money multiplier process if there is an increase in the reserve requirement? O A. An increase in the reserve requirement means that banks will be less likely to have your money when you demand it, but it would increase the money multiplier OB. An increase in the reserve requirement means that banks will be more likely to have your money when you demand it, increasing the money multiplier OC. Since a greater portion of each deposit is being lent out, the multiplier will increase. This means more loans lent and more economic growth. OD. Since a smaller portion of each deposit is being lent out, the multiplier will decrease. This means fewer loans lent and less economic growth.
answers can be increase, decrease or remains the same
Assume bank reserves = $900 billion, currency $600 billion, (R/D) = 0.8, and rrp 0. What is !! the value of the money multiplier? Select one: O A 0.875 O B. 1.15 OC. 1.6 O D. 2.0
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13. Which usually grows faster: M1 or M2? Produce a graph showing M2 divided byM1. When this ratio rises, M2 outpaces M1 and vice versa. What is the long-runpattern? Is the pattern stable?
1.0
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.
The concept of equivalence helps in understanding how different sums of money at different times are equal in economic terms Select one: O True O False
QUESTION 11 If the Federal Reserve purchases $250 million in US Treasury Securities, what will happen to overall bank deposits under the following assumptions: Banks convert 100% of excess reserves to loans, borrowers return 70% of cash to bank, and banks' reserve requirement is 10% O $437.5 million O $625 million O $833.33 million O $2500 million O $1750 million
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.