1. For each of the following transactions, what is the initial effect (increase or decrease) on M1? On M2?
You sell a few shares of stock and put the proceeds into your savings account.
You sell a few shares of stock and put the proceeds into your checking account.
You transfer money from your savings account to your checking account.
You discover $0.25 under the floor mat in your car and deposit it in your checking account.
You discover $0.25 under the floor mat in your car and deposit it in your savings account.