Jaime transfers $2,500 from his checking account to his savings account. This transaction will

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Transferring money from a checking account (which is part of M1) to a savings account (which is also part of M2 but not M1) decreases M1 because the funds are moving out of a medium that is directly used for transactions. However, it does not change M2 because both checking and savings accounts are included in M2, so the total money supply counted in M2 remains the same.

Jaime Transfers $2,500 from His Checking Account to His Savings