If an Individual Moves Money from Currency to a Demand

question 10

Multiple Choice

If an individual moves money from currency to a demand deposit account

• A)M1 decreases 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 stays the same.

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Definitions:

Rehearse Information

The act of practicing or mentally reviewing information repeatedly to enhance memory retention.

Sensory Memory

The shortest-term element of memory, which acts as a buffer for stimuli received through the five senses.

Long-Term Memory

The phase of the memory process that is capable of storing information for prolonged periods, from hours to a lifetime.

Incoming Information

Data or facts received or perceived, often requiring processing or analysis.