The Federal Reserve System

Price: $20 USD

Question description

Indicate whether the money in each situation would be part of both m1 and m2 or just m2. Be prepared to tell why.

1. You receive a cash gift of $500 from a rich uncle
2. You open a regular checking account with a deposit of $400, the money you earned over the summer.
3. You receive $600 from the sale of a painting and deposit the money in an account.
4. You put a gift of $100 into a savings account.
5. You purchase a $50 US Savings Bond.
6. You write a check to pay for your college tuition.
7. If you totaled the m1 money supply and the m2 money supply listed above, which would be greater? Why? Is this always true?

Tutor Answer

(Top Tutor) Daniel C.
School: UT Austin
Studypool has helped 1,244,100 students
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1823 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors