Problem
1. (Banks Are Financial Intermediaries) In acting as financial intermediaries, what needs and desires of savers and borrowers must banks consider?
2. (Money Aggregates) Suppose that $1,000 is moved from a savings account at a commercial bank to a checking account at the same bank. Which of the following statements are true and which are false?
a. The amount of currency in circulation will fall.
b. M1 will increase.
c. M2 will increase.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.