Why Are Checking Account Balances Included in the M₁ Definition

question 138

Multiple Choice

Why are checking account balances included in the M₁ definition of the money supply?

• A)Checking account balances are a traditional form of money that predates paper money.
• B)Checking account balances are used to make so many payments.
• C)Checking account balances are backed by gold and silver.
• D)Checking account balances pay interest.

---

Definitions:

Time and Space

Concepts referring to the dimensions in which events occur and are perceived, often considered in planning and design.

Meeting Respect

The practice of showing consideration and professionalism in meetings, including punctuality, attentiveness, and constructive participation.

Visual Richness

The quality of containing diverse and engaging visual elements, such as images, graphics, and animations, to enhance the appeal and understanding of content.

Confidence

A feeling of self-assurance arising from an appreciation of one's own abilities or qualities.