Business, 19.08.2020 06:01 payshencec21
Refer to the following table to answer the following questions:
Checkable deposits $400,000,000
Currency $340,000,000
Traveler's checks $4,000,000
Money market mutual funds $50,000,000
Small time deposits $6,000,000
Savings deposits $850,000,000
What is the value of M1?
a. $404,000,000
b. $740,000,000
c. $906,000,000
d. $744,000,000
e. $1,650,000,000
What is the value of M2 that is not part of M1?
a. $404,000,000
b, $740,000,000
c. $906,000,000
d. $744,000,000
e. $1,650,000,000
If Harold were to deposit cash into his savings account, which of the following changes would take place?
a. M1 would remain the same.
b. M2 would remain the same.
c. M2 would decrease.
d. M1 would increase.
e. M2 would increase
The local bank has decided to double the number of its local branch offices. How will this affect the bank's balance sheet?
a. Total assets will increase.
b. Total liabilities will increase.
c. Total liabilities will decrease.
d. Total assets will decrease.
e. Total assets and total liabilities will both remain unchanged.
Loans and deposits within a bank are:
a. liabilities and assets, respectively, on a bank's balance sheet.
b. assets and liabilities, respectively, on a bank's balance sheet.
c. are not found on a bank's balance sheet
d. both assets.
e. both liabilities
Answers: 2
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Refer to the following table to answer the following questions:
Checkable deposits $400,000,000
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