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for each of the following transactions, what is the initial effect (increase or decrease) on m1? you sell a few shares of stock and put the proceeds into your savings account. you sell a few shares of stock and put the proceeds into your checking account. you transfer money from your savings account to your checking account. you discover $0.25 under the floor mat in your car and deposit it in your checking account. you discover $0.25 under the floor mat in your car and deposit it in your savings account. place each transaction according to its effect on m1.

Sagot :

For each of the following transactions, the initial effect on M1 is as follows:

  • You sell a few shares of stock and put the proceeds into your savings account: increase
  • You sell a few shares of stock and put the proceeds into your checking account: increase
  • You transfer money from your savings account to your checking account: no effect
  • You discover $0.25 under the floor mat in your car and deposit it in your checking account: increase
  • You discover $0.25 under the floor mat in your car and deposit it in your savings account: that's an increase

The initial effect refers to the immediate impact of the transfer on the accounts involved. For example, if you transfer money from your savings account to your checking account, the initial effect would be that the balance in your savings accounts decreases, and the balance in your checking account increases.

Learn more about the initial effect here:

https://brainly.com/question/24751568

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