An Increase in Currency in Circulation Would ____ M1 and ____

question 20

Multiple Choice

An increase in currency in circulation would ____ M1 and ____ M2.

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

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Definitions:

Future Value

An asset or cash's value on a particular date in the future, matching the value of a specified amount now.

Interest Rate

The percentage of an amount of money charged for its use over a specified period.

Cash Flows

Refers to the total amount of money being transferred into and out of a business, especially affecting liquidity.

Years

Units of time equal to 365 days (or 366 days in a leap year), often used as a measure of time for financial, operational, or strategic planning.