IF AN INDIVIDUAL MOVES MONEY FROM A DEMAND DEPOSIT ACCOUNT TO A S...

137) - TEST BANK CHAPTER 3 WHAT IS MONEY? TÀI CHÍNH TIỀN TỆ
TEST BANK CHAPTER 3 WHAT IS MONEY? TÀI CHÍNH TIỀN TỆ

137) If an individual moves money from a demand deposit account to a small-denomination time deposit

account,

(a) M1 decreases and M2 stays the same.

(b) M1 stays the same and M2 increases.

(c) M1 stays the same and M2 stays the same.

(d) M1 increases and M2 decreases.

Answer: A