Reference no: EM1354274

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