Why Are Checking Account Balances Included in the M1 Definition

question 16

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.

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Definitions:

Tropic Hormones

Hormones that stimulate the release of other hormones from their target glands.

Tetraiodothyronine

Also known as thyroxine or T4, it's a thyroid hormone that plays crucial roles in metabolism and growth.

Thyroxine

A hormone produced by the thyroid gland, essential for regulating metabolism, growth, and development.

Relaxin

Polypeptide hormone secreted by the corpus luteum and placenta during pregnancy; facilitates the birth process by causing a softening and lengthening of the pubic symphysis and cervix.