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:

Adjustable Rate

This term often refers to a type of interest rate on a loan that can fluctuate over time, usually in accordance with a specified financial index.

Foreclosure

A legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, often with interest.

Principal Debtor

A principal debtor is an individual or entity primarily responsible for fulfilling the obligations of a debt or loan.