If an Individual Moves Money from a Small-Denomination Time Deposit

question 99

Multiple Choice

If an individual moves money from a small-denomination time deposit to a demand deposit account

• A)M1 increases 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 increases and M2 decreases.

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Definitions:

Lenders

Entities that provide financial resources to individuals or organizations with the expectation that the funds will be repaid, typically with interest.

Ethics

A branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong behavior.

Maximizing Wealth

The process or strategy aimed at increasing the financial value and assets owned by an individual or corporation.

External Users

Individuals or entities outside of a company who rely on financial statements to make informed decisions about the company, including investors, creditors, and regulatory agencies.