Question by entranced82: How does investing in certificates of deposit aid the economy, if at all?
Does investing in CD’s help? Does it not aid? If so or if not, how does it influence the economy? Thanks, in advance, for all your responses.
Very best answer:
Answer by alcan52
It doesnt help the economy. How it effects the economy depends on exactly where and when the funds originated. Example if you use the stimulis cash produced in the final couple of months then that funds will cause the money supply (inflation) to enhance. On the other hand if you pay off debt with that identical stimulis funds then that causes a retraction in the cash supply. If the cash to go into the CD is comming from other savings not invested in the industry then it has no impact. But pulling funds out of the market gives company less capitol to function with. To understand what Im saying about how income is produced and retracted you have to google and discover about “fractional reserve banking” then you will understand.
Know greater? Leave your personal answer in the comments!