Carter's $150,000 CD matures and he deposits the funds into his checking account so he can buy a house. The total effect is that M1 ____ and M2 ____.

A. is unchanged; falls by $150,000
B. rises by $150,000; is unchanged
C. rises by $150,000; falls by $150,000
D. rises by $150,000; rises by $150,000


Answer: D

Business

You might also like to view...

A resolution by the board of directors to set aside a part of the credit balance of the retained earnings account for a specific use is called

a. earnings retained in the business. b. an appropriation. c. a recapitalization. d. a deficit.

Business

A collaborative team is needed to create a business plan

Indicate whether the statement is true or false

Business

Discuss the accounts receivable turnover ratio

Business

The ____________________ side of a liability account is used to record decreases in the account balance

Fill in the blank(s) with correct word

Business