Indicate Whether Each Of The Following Is Part Of M1 M2 Or Neither 95 On Your Ca
4. Indicate whether each of the following is part of M1, M2, or neither: a. $95 on your campus meal card b. $0.55 in the change cup of your car c. $1,663 in your savings account d. $459 in your checking account e. 100 shares of stock worth $4,000 f. A $1,000 line of credit on your Sears credit card 5. Tracy Williams deposits $500 that was in her sock drawer into a checking account at the local bank. A. How does the deposit initially change the T-account of the local bank? How does it change the money supply? B. If the bank maintains a reserve ratio of 10%, how will it respond to the new deposit? C. If every time the bank makes a loan, the loan results in a new checkable bank deposit in a different bank equal to the amount of the loan, by how much could the total money supply in the economy expand in response to Tracy”s initial cash deposit of $500? D. If every time the bank makes a loan, the loan results in a new checkable bank deposit in a different bank equal to the amount of th