Yolanda took $5,000 from her checking account and put the money in her savings a

Question

Yolanda took $5,000 from her checking account and put the money in her savings account at the same bank. Both M1 and M2 were reduced by $5,000. M1 went down by $5,000, but M2 was unchanged. Neither M1 nor M2 changed because the transfer was done at the same bank. M1 and M2 both rose by $5,000. Yolanda took $5,000 from her checking account and put the money in her savings account at the same bank. Both M1 and M2 were reduced by $5,000. M1 went down by $5,000, but M2 was unchanged. Neither M1 nor M2 changed because the transfer was done at the same bank. M1 and M2 both rose by $5,000.

Explanation / Answer

M1 went down by $5,000, but M2 was unchanged

as M1 doesnt account saving account and accounts checking account. So taking money out of checking to saving will delcline M1. However, M2 account both accounts, so no change on M2.

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