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Hideo and Hannah Decide to Go on a Vacation

Question 202

Multiple Choice

Hideo and Hannah decide to go on a vacation. As a result, they withdraw $5,000 from their savings account to purchase $5,000 worth of traveler's checks. As a result of these changes,


A) M1 increases by $5,000 and M2 decreases by $5,000.
B) M1 increases by $5,000 and M2 stays the same.
C) M1 and M2 stay the same.
D) M1 decreases by $5,000 and M2 increases by $5,000.

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