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artcher [175]
3 years ago
10

Sara withdraws​ $1,000 from her savings account at the Lucky​ S&L, keeps​ $50 in​ cash, and deposits the balance in her chec

king account at the Bank of Illinois. What is the immediate change in M1 and​ M2? The immediate change is​ ______ in M1 of​ $1,000 and​ ______ in M2.
Business
1 answer:
Mashutka [201]3 years ago
8 0

Answer:

The immediate change is​ an increase in M1 of​ $1,000 and​ no change in M2.

Explanation:

The M1 definition of money includes cash, coin, checkable deposits, and traveler checks. The M2 definition of money includes all the components of M1 and savings account, money market funds, certificate of deposits, and other time deposits.

A withdrawal of $1,000 from savings account will increase M1 by $1,000, as the $50 cash and the rest of $950 in her checking account is added to M1. However, the M2 will remain the same, as the $1,000 in the savings account which is included in M2 goes to cash and checking deposit which is also in M2.

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If the cost of housing increases by 10 percent, then, other things the same, the CPI is likely to increase by about:(A) 10 perce
djverab [1.8K]

Answer:

correct option is (D) 4 percent

Explanation:

given data

cost of housing increases = 10 percent

to find out

CPI is likely to increase by

solution

as other thing  (CPI) Consume price index is likely to increase as

(CPI) Increase in Consume price index = 40 % of cost of housing increases  ...................1

so (CPI) Increase in Consume price index = 40 % of 10%

Increase in Consume price index = 4%

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Ana is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: Ana
Virty [35]

Answer:

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stich3 [128]
B. when you are making a career change
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Renaldo Cross Company views share buybacks as treasury stock. Renaldo repurchased shares and then later sold the shares at more
allsm [11]

Answer: a) Option A

Explanation:

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Total paid-in capital increases when stock is sold for higher than its par value or when treasury stock is sold for higher than its acquisition price. The treasury stock here was sold for higher than it was bought so this would increase the total paid in capital.

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