Gary Goldwater has $5,000 in cash.He deposits $1,000 in his checking account, buys $500 of traveler's checks, puts $1,500 in his money-market mutual fund, and buys a $2,000 CD.How does this transaction affect M1 and M2?

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The Answer of Gary Goldwater has $5,000 in cash.He deposits $1,000 in his checking account, buys $500 of traveler's checks, puts $1,500 in his money-market mutual fund, and buys a $2,000 CD.How does this transaction affect M1 and M2?

Gary Goldwater Has $5,000 in Cash