Money, Banking, and the Federal Reserve System- End of Chapter Problem For each of the following transactions, what is the initial effect (increase or decrease) on M1? You sell a few shares of stock and put the proceeds into your savings account. You sell a few shares of stock and put the proceeds into your checking account. You transfer money from your savings account to your checking account. You discover $0.25 under the floor mat in your car and deposit it in your checking account. You discover $0.25 under the floor mat in your car and deposit it in your savings account. Place each transaction according to its effect on M1. MI increases MI decreases MI unchanged