If You Transfer $1,000 from Your Savings Account to Your

question 1

Multiple Choice

If you transfer $1,000 from your savings account to your checking account:

• A) M1 decreases by $1,000, and M2 increases by $1,000.
• B) M1 increases by $1,000, and M2 decreases by $1,000.
• C) M1 and M2 don't change.
• D) M1 increases by $1,000, but M2 doesn't change.

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Definitions:

Executive Agreements

International agreements entered into by the president that do not require Senate approval, often used in foreign policy.

Formal Treaties

Officially binding agreements between states or nations, governed by international law and formally ratified by the participating entities.

Senate

The upper legislative house in many bicameral parliamentary systems, often tasked with reviewing legislation passed by the lower house.

Delegated Powers

Powers that are explicitly given by the Constitution to the federal government or its branches, allowing it to perform its duties.