Sam has $500 in traveler's checks. He cashes a $100 traveler check, deposits $150 into his checking account at a Savings and Loan Association, and deposits the remaining $250 into a savings account at a credit union. Immediately,
O M₁ does not change and M₂ increases by $250.
O M₁ decreases by $400 and M₂ increases by $250.
O M₁ decreases by $250 and M₂ does not change.
O M₁ and M₂ do not change.