Question

g transfers ​$15​,000 from her small time deposit at the Bank of Alabama to her savings account. M1​ _______ and M2​ _______.

Answer 1

Answer:

M1​ WILL REMAIN THE SAME and M2​ WILL REMAIN THE SAME.

Explanation:

M1 includes:

• coins and bills in circulation
• checking accounts
• travelers' checks

M2 includes:

• M1
• savings accounts: THE $15,000 WERE DEPOSITED HERE
• money market funds
• small time deposits: THE $15,000 WERE WITHDRAWN FROM HERE