Suppose you withdraw 1000 from your checking account and, Finance Basics

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Suppose you withdraw 1000 from your checking account and

1. Suppose you withdraw $1,000 from your checking account and use the funds to buy a certificate of deposit at your bank. How will these actions affect M1 and M2?

Why aren't credit cards included in M1 or M2?

2. In a report published in 2009, investment analyst Ned Davis referred to gold as "real money." Is gold used as money in the United States? What point was Davis making?

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Finance Basics: Suppose you withdraw 1000 from your checking account and

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