If the Nonbank Public Wants to Move Funds from Savings

question 15

Multiple Choice

If the nonbank public wants to move funds from savings accounts to checkable deposits

• A) M1 and M2 would both rise.
• B) M1 and M2 would both remain unchanged.
• C) M1 would rise and M2 would remain unchanged.
• D) M1 would rise and M2 would fall.

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Definitions:

Angiotensin II

Peptide derived from angiotensin I; stimulates vasoconstriction and aldosterone secretion; also called active angiotensin.

Blood Volume

The total volume of blood circulating within an individual's vascular system.

ADH Production

The synthesis and release of antidiuretic hormone, also known as vasopressin, primarily by the posterior pituitary gland, which helps regulate water balance in the body.

Hyperventilation

Rapid or deep breathing that leads to a decrease in carbon dioxide levels in the blood, potentially causing dizziness or tingling.