Checking Account Deposits Are Counted as Part of the M1

question 81

Multiple Choice

Checking account deposits are counted as part of the M1 money supply because

• A) they earn interest income for the depositor.
• B) they are widely used as a means of making payment.
• C) banks hold currency equal to the value of their outstanding checking account deposits.
• D) they are ultimately the obligations of the Treasury.

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