Question

Alfonzo started with $50.00 in his checking account. He recorded these transactions in his check book: - $12.75,-$5.43, $75.00, –$2.57, and - $22.25.

Answer 1

In this question, we determine whether the given items belong to M1, M2 or neither categories of money supply.

Step-by-step explanation:

In this question, we need to determine if the given items are classified as M1, M2, or neither.

1. a. Your $5,000 line of credit on your Bank of America card: Neither M1 nor M2, as it is not part of the money supply.
2. b. $50 dollars' worth of traveler's checks you have not used yet: Neither M1 nor M2, as it is not part of the money supply.
3. c. $1 in quarters in your pocket: M1, as it is part of the money supply in the form of currency.
4. d. $1200 in your checking account: M1 and M2, as it is part of the money supply in the form of demand deposits.
5. e. $2000 you have in a money market account: Neither M1 nor M2, as it is not part of the money supply.

Answer 2

$45.65, is the answer of money left in the account.