Answered: Ana takes P10,000 out of her checking…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Ana takes P10,000 out of her checking account and puts it in his savings account while Biff withdraws P20,000 from his money market mutual fund in the form of cash. The total effect is that M1 ____ and M2 ____. *

is unchanged; falls by P10,000.

is unchanged; is unchanged

rises by P10,000; falls by P10,000

rises by P10,000; is unchanged

Definition Definition Financial market that deals in securities or assets that are short-term in nature. The money market is responsible for keeping up the liquidity of the businesses and the organizations. These securities are usually held for a period of 12 months or less and are issued by institutions that require cash or funds for their short-term cash flow requirements. The money market is regulated by the federal government.

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