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:

Ritualism

The adherence to or performance of rituals or ceremonial acts as part of a culture, religion, or group membership.

Status Frustration

A psychological condition resulting from an individual's inability to achieve his or her expected social status, leading to feelings of inadequacy and disappointment.

Delinquent Subcultures

Groups within society that engage in behavior against the societal norms and laws, often among youths.

Differential Illegitimate Opportunity

A theory suggesting that access to opportunities for achieving success through illegal means varies among different social groups.