If Wolfgang Transfers $1,000 Out of His Non- Chequable Deposit

Multiple Choice

If Wolfgang transfers $1,000 out of his non- chequable deposit account and places it in his chequable deposit account,

A) M1 and M2 fall.
B) M1 rises and M2 remains the same.
C) M1 falls and M3 rises.
D) M1 falls and M2 rises.
E) M1 falls and M2 remains the same.