Which of the Following Would Lead to a Change in the Money

question 48

Multiple Choice

Which of the following would lead to a change in the money measure, M1?

• A)a customer's cash withdrawal from an ATM
• B)a customer withdraws funds from her checking account to purchase a 6-month time deposit
• C)depositing a paycheck drawn against Bank of America into your checking account in Wells Fargo Bank
• D)interest payments by the Treasury on its debt

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Definitions:

Fair Market Value

The price at which property would sell between a willing buyer and a willing seller, each having reasonable knowledge of all relevant facts and not under any compulsion to transact.

Appraised Value

The estimated monetary value of an asset determined by a professional appraiser at a specific point in time.

Depreciated

Refers to the reduction in the recorded value of an asset over time due to wear and tear, obsolescence, or age.

Equipment

Tangible assets used in operations, such as machinery or office hardware, that play a key role in business operations and productivity.