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

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If a person takes $100 from his/her piggy bank at home and puts it in his/her savings account,then M1 will ________ and M2 will ________.


Definitions:

Good-Faith Deposit

A sum of money provided as a sign of commitment or seriousness, often used in transactions like real estate purchases to secure a deal before finalizing.

Broker

An individual or firm that acts as an intermediary between buyers and sellers, usually charging a commission for services.

Hedge

An investment made to reduce the risk of adverse price movements in an asset, usually by taking an offsetting position in a related security.

Treasury Bonds

Long-term, fixed-interest U.S. government debt securities with a maturity of more than ten years.

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