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1 . Let s assume that Jon has $ 1 , 0 0 0 in currency that he has been carrying around. Jon decides this

1. Lets assume that Jon has $1,000 in currency that he has been carrying around. Jon decides this is unsafe and deposits the full $1000 into his checking account at The River Bank. By how much has total M1 in the country changed by this transaction alone?
2. Again, assuming the balance sheet for Last National Bank as the starting point, Marsha receives her weekly paycheck via direct deposit to her account at LNB. Her paycheck is $1,000. What is the new total reserves?
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