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Question 1: Clarify what will happen to the size of both M1 and M2 in each of the following situations.
a. Ali, a millionaire, withdraws Rs.500, 000 from his money market account to buy a famous painting.
a. Bilal transfers Rs.10, 000 from his checking account to his savings account.
a. Sara takes Rs.5, 000 out of her checking account to buy IBM stock.
a. Ali, a millionaire, withdraws Rs.500, 000 from his money market account to buy a famous painting.
a. Bilal transfers Rs.10, 000 from his checking account to his savings account.
a. Sara takes Rs.5, 000 out of her checking account to buy IBM stock.
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