Money Is

question 210

Multiple Choice

Money is

• A)an asset that people are willing to accept in exchange for goods and services.
• B)a liability that people are willing to accept in exchange for goods and services.
• C)the income one earns over a period of time.
• D)one's assets net of one's liabilities at any point in time.

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulating banks, and ensuring financial stability.

Commercial Banks

Commercial banks are financial institutions that accept deposits, offer checking account services, and make loans to individuals and businesses.

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves that must be held by a commercial bank.

Checkable Deposit Liabilities

These are bank account deposits that are immediately available to make payments and transfers, typically seen in checking accounts.