Which of the Following Is True of Other Checkable Deposits

question 33

Multiple Choice

Which of the following is true of other checkable deposits?

• A) They are checking account deposits at commercial banks and do not pay any interest.
• B) They are accounts at financial institutions that pay interest and give the depositor check-writing privileges.
• C) They comprise solely of demand deposits at mutual savings banks.
• D) They are not included in the M1 money supply.
• E) They are savings deposits that earn interest at savings and loan associations.

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Definitions:

Average Total Costs

The total costs of production (fixed plus variable) divided by the total quantity of output produced, expressing the cost on a per-unit basis.

Economies of Scale

The savings that organizations achieve through their size of operation, where the expense per produced unit consistently decreases with an upscaling in operation.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's size or output increases beyond a certain point.

U-shaped

A description often used to illustrate how certain economic variables, such as average cost, behave, initially decreasing with increased activity and then increasing.