Funds in a retail money market mutual fund account

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For each of the following transactions identify by how much M1 and M2 change. (a) Your grandmother gives you a check for $250 as a present for your birthday. You deposit the check into your checking account. You then withdraw $50 as cash and transfer $100 into your savings account.) (B) Andreas has $2 million of funds in a retail money market mutual fund (RMMF) account that he wants to close. He uses $1 million from the RMMF account to purchase large-denomination CDs and he transfers another $750,000 into his personal savings account. He moves the remaining funds to his checking account.

Reference no: EM13998518

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