If Joe Withdraws a $100 Bill from His Checking Account

question 353

Multiple Choice

If Joe withdraws a $100 bill from his checking account and Jack deposits another $100 bill in his savings account,by how will M1 and M2 change?

• A)M1 will decrease,but M2 will remain the same.
• B)M1 will increase,and M2 will increase.
• C)M2 will decrease by $100.
• D)Both M1 and M2 will remain the same.
• E)M1 will remain the same,and M2 will increase.

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Definitions:

Operations Combine

The integration of different business operations or activities to achieve greater efficiency or synergy.

Directors Approval

A formal endorsement by a company's board of directors to proceed with an action or decision.

Merger Plan

A strategic blueprint for combining two or more companies into a single entity, detailing the legal, financial, and operational steps involved.

Share Exchanges

A process by which companies exchange their own shares with each other, often as a means of acquisition or merger.