If You Deposit $1,000 in Cash in Your Checkable Deposit

question 201

Multiple Choice

If you deposit $1,000 in cash in your checkable deposit at your bank,the quantity of M1 immediately

• A)increases by $1,000.
• B)decreases by $1,000.
• C)increases by $2,000.
• D)does not change in size.
• E)changes,but more information about the required reserve ratio is necessary to determine the amount of the change.

---

Definitions:

Statistical Analyses

The process of collecting, examining, interpreting, and presenting data to discover underlying patterns and trends.

Historical Data

Information from the past, used for analysis or reference, which can include financial records, sales figures, or operational metrics to guide decision-making.

Contingency Planning

The process of developing strategies to address possible future events or circumstances that could negatively impact operations.

Alternative Courses

Different paths or strategies that can be pursued to achieve a specific goal or resolve a problem.