A New Financial Innovation Results in People Switching Their Funds

question 331

Multiple Choice

A new financial innovation results in people switching their funds from checking deposits to savings accounts. The quantity of M1 ________ and the quantity of M2 ________.

• A) decreases; decreases
• B) increases; decreases
• C) decreases; does not change
• D) decreases; increases

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Definitions:

Homosexual Marriage

The legal union between two people of the same sex; also known as same-sex marriage.

Legal

Pertaining to the law or the judiciary, involving the application or interpretation of laws and legal principles.

United States

A country primarily located in North America consisting of 50 states and a federal district.

Domestic Violence

Physical, emotional, or sexual abuse by one family member against another within the domestic setting.