When you take $500 from your saving account and deposit it in your checking account, M1 increases.

Name: When you take $500 from your saving account and deposit it in your checking account, M1 increases.
Brand: Quizplus
Rating: 4.8 (47 reviews)

Question

Quizplus · Accepted Answer

M1 represents the money supply that includes currency, demand deposits, traveler’s checks, and other checkable deposits. When you transfer $500 from your savings account to your checking account, your checkable deposits increase, resulting in an increase in M1.

When You Take $500 from Your Saving Account and Deposit