Why Are Checking Account Balances Included in the M1 Definition

question 130

Multiple Choice

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

• A)They are a traditional form of money that pre-dates paper money.
• B)They are used to make so many payments.
• C)They are backed by gold and silver.
• D)They pay interest.

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Definitions:

Decline of Manufacturing

Refers to the decrease in the production of goods in factories and the reduction of jobs in the manufacturing sector, often due to automation, globalization, and shifts towards a service-based economy.

National War Labor Board

A historical government agency established during wartime to resolve labor disputes and ensure efficient production and labor harmony.

Institutionalizing

The process of embedding certain practices, norms, or policies within an organization, making them an established part of its culture or structure.

Legitimating Unions

The process of recognizing and validating labor unions as legitimate representatives of workers.