If You Liquidate $3,000 of Your Mutual Fund and Transfer

question 201

Multiple Choice

If you liquidate $3,000 of your mutual fund and transfer the funds to your checking account,then initially,M1 will ________ and M2 will ________.

• A)not change;decrease
• B)increase;decrease
• C)increase;not change
• D)not change;not change

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Definitions:

Negotiators

Individuals who engage in discussions with the aim of reaching an agreement or resolving a dispute between parties.

Explanations

Statements or reasons given to justify actions or make something clear.

Interpretation

The act of explaining or understanding the meaning of something, typically involving a degree of personal judgment or perspective.

Stimuli

External events or occurrences that elicit responses or reactions from an organism or system.