If you put $500 into a checking account, the immediate effect (do not consider the money multiplier which we will study in the next chapter) is:

a. M1 rises, M2 falls, and the monetary base remains the same.
b. M1 falls, M2 falls, and the monetary base remains the same.
c. M1 rises, M2 rises, and the monetary base remains the same.
d. M1, M2, and the monetary base rise.
e. M1, M2, and the monetary base remain the same.

.E