IF AN INDIVIDUAL MOVES MONEY FROM A SMALL-DENOMINATION TIME DEPOS...

136) If an individual moves money from a small-denomination time deposit to a demand deposit account,

(a) M1 increases and M2 stays the same.

(b) M1 stays the same and M2 increases.

(c) M1 stays the same and M2 stays the same.

(d) M1 increases and M2 decreases.

Answer: A

Question Status: Previous Edition