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Freema Withdraws $1,000 from Her Checking Account to Purchase a $1,000

Question 23

Multiple Choice

Freema withdraws $1,000 from her checking account to purchase a $1,000 time-deposit.
As a result of her transaction,

A) M1 and M2 decrease.
B) M1 decreases and M2 increases.
C) M1 decreases and M2 is unaffected.
D) M1 and M2 are unaffected.

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