When you take $100 from your saving account and deposit it in your checking account, M2 decreases.

Name: When you take $100 from your saving account and deposit it in your checking account, M2 decreases.
Brand: Quizplus
Rating: 4.9 (40 reviews)

Question

Quizplus · Accepted Answer

When money is transferred from a savings account to a checking account, it does not affect the M2 money supply because both accounts are already considered part of M2. Therefore, there is no decrease in M2.

When You Take $100 from Your Saving Account and Deposit