Rick withdraws $500 from his savings account, keeps $100 as currency, and deposits $400 in his checking

Question:

Rick withdraws $500 from his savings account, keeps $100 as currency, and deposits $400 in his checking account.

A. M1 increases by $400 and M2 decreases by $500.

B. M1 does not change, but M2 decreases by $500.

C. M1 does not change, but M2 decreases by $400.

D. M1 increases by $500 and M2 does not change.

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