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

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$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.
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This note was uploaded on 10/17/2011 for the course EC 202 taught by Professor Obst during the Summer '08 term at Michigan State University.

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

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