Joan Begins the Month with $100 in Her Checking Account

question 239

Multiple Choice

Joan begins the month with $100 in her checking account. When she receives a pay check for $1,200 on the 5th of the month, she uses that pay check to put $1,000 in her checking account, takes $80 in cash, and deposits $120 in her savings account. During the month, she spends $550 on rent and utilities, $30 on household items, $10 on a T-shirt, and $350 on food, leaving a balance of $240 in her checking account. Based on the given information, which statement is true?

• A) The $100 and then $220 in Joan's savings account is part of M1.
• B) When Joan deposits her pay check and receives cash, M1 falls by $120.
• C) Joan's deposit into her checking account increases M1 by $1,000.
• D) M1 falls as Joan spends her money.

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Definitions:

Method of Substitution

A strategy for solving systems of equations by replacing variables with equivalent expressions to simplify the system.

System of Equations

A set of two or more equations with the same variables.

Method of Elimination

A technique used in solving systems of equations where one variable is eliminated by adding or subtracting the equations.

System of Equations

A set of two or more equations with the same variables, solved together to find common solutions.