When Komal Gathers Up All of Her Loose Change and Deposits

question 149

Multiple Choice

When Komal gathers up all of her loose change and deposits it in her chequing account, the immediate effect is

• A) both M1+ and M2+ increase.
• B) M1+ increases and M2+ is unchanged.
• C) M2+ increases and M1+ is unchanged.
• D) both M1+ and M2+ are unchanged.
• E) both M1+ and M2+ decrease.

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Definitions:

Short-Term Note Payable

A Short-Term Note Payable is a debt due for repayment within one year that a company owes to a lender or creditor.