{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Assignment 2

# Assignment 2 - \$10,000 cash \$30,000 deposit FED\$220,000...

This preview shows pages 1–2. Sign up to view the full content.

\$220,000 checking deposits \$100,000 savings deposits \$10,000 cash \$30,000 deposit FED \$80,000 Gov. Sec. \$250,000 Loans + \$4,000 checkable deposits + \$4,000 loans \$30,000 Gov. Sec. \$30,000 deposit FED - \$10,000 savings deposit - \$10,000 loans Econ 202 - Unit 2 Assignment Name________Ryan Ingalls___ I. Determine by how much each of the following transactions affect M1 and M2. A.Smith transfers \$400 from her savings to her checking account. M1 increases by \$400. M2 is unchanged B.Zetterberg withdraws \$200 from his checking account. M1 and M2 are unchanged C.Mason withdraws all the money from her \$40,000 time deposit. M1 increases by \$40,000. M2 is unchanged D.After Smith dies, her three children inherit her \$300,000 time deposit, which they divided equally, and each transfers \$100,000 to their savings accounts. M1 is unaffected. M2 increases by \$300,000. E.St. Johns pays back a \$500 loan from his bank with money from his savings account. M1 is unchanged. M2 decreases by \$500. II. The Bank of Nelson (BON) is a bank in the United States, with \$10,000 cash in its vault, and \$30,000 on deposit at the Federal Reserve (FED). The customers of the bank have on deposit \$220,000 in checking accounts and \$100,000 in savings accounts. The bank owns

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 2

Assignment 2 - \$10,000 cash \$30,000 deposit FED\$220,000...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online