Jaime Transfers $2,500 from His Checking Account to His Savings

question 237

Multiple Choice

Jaime transfers $2,500 from his checking account to his savings account. This transaction will

• A) decrease both M1 and M2.
• B) not change M1 and decrease M2.
• C) decrease M1 and not change M2.
• D) increase both M1 and M2.

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Definitions:

Deny Coverage

An insurance company's refusal to accept a claim, meaning they will not pay out benefits under an insurance policy.

Personal Injury

Harm or damage suffered by an individual to their body, mind, or emotions, as opposed to damage to property, often leading to a legal claim.

Physical Loss

Damage or destruction of property that results in its disappearance or renders it unusable in its existing form.

Homeowner's Insurance

A type of property insurance that covers losses and damages to an individual's house and assets in the home.