Sam Has $500 in Traveler's Checks

Sam has $500 in traveler's checks. He cashes a $100 traveler check, deposits $150 into his checking account at a Savings and Loan Association, and deposits the remaining $250 into a savings account at a credit union. Immediately,

A) M1 decreases by $250 and M2 does not change.
B) M1 decreases by $400 and M2 increases by $250.
C) M1 does not change and M2 increases by $250.
D) M1 and M2 do not change.