Ask Question
BusinessBusiness
28 September, 12:02

Assume that Jimmy Cash has $2000 in his checking account at Folsom Bank and uses his checking account card to withdraw $200 of cash from the banks' ATM machine. By what dollar amount did the M1 money supply change as a result of this single, isolated transaction?

+3
Answers (1)
  1. 28 September, 12:30
    0
    It has no effect

    Explanation:

    M1 includes the currency and checking accounts. The bank account will decrease by 200 (cheking deposit) and increase currency by 200. So it will be the same as before the transactions.

    The M1 money supply will not change as a result of this transaction.

    In other words, M1 contains cash and near cash equivalent, this transaction do not increase or reduce these concepts.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Assume that Jimmy Cash has $2000 in his checking account at Folsom Bank and uses his checking account card to withdraw $200 of cash from ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
When citibank repays a loan it had previously taken from the fed, it the money supply?
Answers (1)
What determines how a change in prices will affect total revenue for a company? a. elasticity of demand b. the company's pricing policy c. values of elasticity d. the consumers' incomes
Answers (1)
Candy's chocolates inc. is a confectionary company that manufactures only one product. unlike its competitors, the firm does not have its target customer base as children.
Answers (1)
True or false? 12% of people generate 70% of the impact online.
Answers (1)
The proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own, is called: a. the Pigovian theorem. b. a corrective tax. c. the externality theorem. d.
Answers (1)
New Questions in Business
Joyce finds that the members of the project team to which she has been promoted are all middle-aged men. joyce wonders if she, a young new graduate from a local university, will be taken seriously. joyce is likely to be reacting to a
Answers (1)
What is inflation? A. The value of products and services produced in a country B. The growth of value in a company C. When the value of a dollar goes down, so you can't get as many products or services for your dollar D.
Answers (1)
The Frank Company has issued 10%, fully participating, cumulative preferred stock with a total par value of $300,000 and common stock with a total par value of $900,000. Dividends for one previous year are in arrears.
Answers (1)
How did Blue Bell's response to their contamination at it's plants in packed the triple bottom line
Answers (1)
A company's trial balance included the following account balances: Accounts Payable $ 19,207 Accounts Receivable 81,336 Cash 73,324 Income Tax Payable 3,512 Inventory 25,816 Note Payable, due in two years 1,709 Equipment 54,128 Stockholders' Equity
Answers (1)
Home » Business » Assume that Jimmy Cash has $2000 in his checking account at Folsom Bank and uses his checking account card to withdraw $200 of cash from the banks' ATM machine.
Sign Up Forgot Password?