If Banks Move a Substantial Portion of Depositors' Money from Interest-Earning

Multiple Choice

If banks move a substantial portion of depositors' money from interest-earning checking accounts into money-market deposit accounts, how will the money supply measures be affected?

A) M1 will become smaller, and M2 will become larger.
B) Both M1 and M2 will increase in size.
C) Both M1 and M2 will decrease in size.
D) The size of M1 will be reduced, but M2 will be unchanged.