1. A person has transferred an amount $100 million of from a checking account to a time deposit account. How will M1 and M2 change?
2. Analyze and graph the effects of the following situations on the money supply, money demand, and interest rate in equilibrium in the money market.

a. The central bank issues and sells government bonds to the public.

b. The prices of domestic goods fall.

c. The trend of online shopping and electronic payment is becoming more and more popular.

d. The income of laborers has decreased significantly during the time of widespread of COVID-19 epidemic.

3.Suppose an economy has the currency deposit ratio is 20% and the reserve deposit ratio is 20%. What should the central bank do to decrease the money supply by the amount of $200 billion in the open market. Quantify your answer.

4.A banking system has a total reserve of $20 billion with a required reserve ratio of 20% and no excess reserves. The public holds $10 billion in cash. Assuming the economy then has experienced instability, the public withdrew $5 billion from their deposit accounts. Keeping other things unchanged, how much will the central bank need to reduce the required reserve ratio to keep the money supply unchanged?

Many thanks for your answers .