If an Individual Redeems a U

question 28

Multiple Choice

If an individual redeems a U.S. savings bond for currency

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

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Definitions:

Supplier's Account

An account kept by a business to record transactions (like purchases and payments) related to a specific supplier.

Purchases Journal

A specialized accounting journal used to record all purchases of merchandise, inventory, and other supplies on credit.

Life Vests

Safety devices designed to keep an individual afloat in water and reduce the risk of drowning.

Customer Account

An account that records all transactions between a business and its customers, including purchases, payments, and credits.