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