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Assume that jimmy cash has $2000 in his checking account at folsom bank and uses his checking account card to withdraw $200 of cash

Assume that Jimmy Cash has $2,000 in his checking account at Folsom Bank. He uses his checking account card to withdraw $200 in cash from the bank's ATM machine. By what dollar amount did the M1 money supply change as a result of this single, isolated transaction?

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3 Answers

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Anonymous

Nov 25, 2024

It has no effectExplanation:M1 includes the currency and checking accounts. The bank account will decrease by 200 (cheking deposit) and increase currency by 200. So it will be the same as before the transactions.The M1 money supply will not change as a result of this transaction. In other words, M1 contains cash and near cash equivalent, this transaction do not increase or reduce these concepts.
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Anonymous

Jan 08, 2025

you can put this in your 11 sentence summary" most of the money would be invested in innovation, economic convergence."
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