If an Individual Uses Money from a Demand Deposit Account

question 75

Multiple Choice

If an individual uses money from a demand deposit account to purchase a U.S. savings bond

• A)M1 decreases and M2 stays the same.
• B)M1 stays the same and M2 increases.
• C)M1 stays the same and M2 stays the same.
• D)M1 decreases and M2 decreases.

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Definitions:

ADH Secretion

ADH secretion involves the release of antidiuretic hormone, also known as vasopressin, from the pituitary gland which helps regulate water balance in the body.

Carotid Sinuses

Dilated areas at the base of the internal carotid artery and the bifurcation of the common carotid artery which contain baroreceptors that help regulate blood pressure.

Blood Pressure

The force exerted by circulating blood against the walls of the body's arteries.

Vertebral Arteries

Vertebral Arteries are major arteries of the neck that supply blood to the brain, spinal column, and surrounding areas.