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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Definitions:

Bromobenzene

An organobromide compound with a formula C6H5Br, used as a precursor in organic synthesis for the introduction of phenyl groups.

Reagents

Chemical substances used in reactions to bring about and probe chemical changes, often to transform reactants into products.

2,2-dimethyloxirane

A type of oxirane with two methyl groups attached to the same carbon atom, used in organic synthesis.

Ethanol

A volatile, flammable, colorless liquid alcohol, used as a solvent, antiseptic, and intoxicant.