Winnie withdraws HK$500 000 from her time deposit with a deposit-taking company. Then she deposits HK$200 000 as a time deposit and HK$100 000 as a demand deposit with a licensed bank. She keeps $50 000 in a safe at home and remits the remainder overseas.
What will be the immediate effect of the above actions on the Hong Kong dollar money supply?
A. M1 will increase by HK$50 000 and M2 will increase by HK$350 000.
B. M1 will increase by HK$150 000 and M3 will decrease by HK$150 000.
C. M2 will increase by HK$150 000 and M3 will decrease by HK$150 000.
D. M2 will increase by HK$350 000 and M3 will decrease by HK$500 000.