If a Person Takes $100 from His/her Piggy Bank at Home

question 29

Multiple Choice

If a person takes $100 from his/her piggy bank at home and buys Canada Savings Bonds, then M1+ will ________ and M2++ will ________.

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

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Definitions:

Personal Liability

Legal responsibility of an individual to settle debts or legal judgments from their assets, not protected by business structures or limited liability.

Limited Partners

Investors in a partnership who have limited liability to the extent of their investment and are not involved in day-to-day management decisions.

Limited Partnership

A partnership where at least one partner has limited liability for the debts of the business, while at least one other has full liability.

S Corporation

is a type of corporation in the United States that elects to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code, allowing income to be passed through to shareholders and taxed at individual rates.