What Effect Would a Withdrawal of Currency from Your Credit

question 144

Multiple Choice

What effect would a withdrawal of currency from your credit union savings account have?

• A)It would increase M2 but have no effect on M2+.
• B)It would decrease both M2 and M2+.
• C)It would increase both M2 and M2+.
• D)It would decrease M2+ but have no effect on M2.

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Definitions:

Processing Centres

Facilities or locations where raw materials or inputs are transformed into finished goods or services through various processes.

Small Lot Sizes

Production or ordering in limited quantities, which can enhance flexibility and reduce inventory costs.

Just-In-Time Production

An inventory strategy companies use to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.