Question

If you cash a $70 traveler’s check at a bank, by how much do(es)

(a) M1 change?

Not enough information, Decreases by $70, No change, Increases by $70

(b) M2 change?

No change Decreases by $70 Increases by $70 Not enough information

(c) Bank reserves change? Decreases by $70 Increases by $70 No change Not enough information

If you deposit the traveler's check in your bank account (i.e., a transactions account), by how much do(es)

(d) M1 change?

Decreases by $70 No change Increases by $70 Not enough information

(e) M2 change?

Decreases by $70 Increases by $70 Not enough information No change

(f) Bank reserves change?

Decreases by $70 No change Increases by $70 Not enough information

Answer 1