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What Will Happen to the Sizes of the M1 Money

Question 21

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What will happen to the sizes of the M1 money supply and the M2 money supply if the following transactions take place?
a. Tasha withdraws $3,000 from her checking account and holds it as currency.
b. Arturo withdraws $3,000 from his savings account and deposits it in his checking account.
c. Benjamin withdraws 3,000 from his savings account and puts it in a certificate of deposit (CD).
d. Marisol withdraws $3,000 from her home safe and deposits it in her savings account.

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a. no change to M1 and no chan...

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