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:

Warrantless Search

A search conducted by law enforcement without a court-issued warrant, often justified by exigent circumstances or conducted within specific legal exceptions.

Digital Contents

Electronic materials such as text, images, video, and audio that are created, shared, and accessed via digital devices and platforms.

Riley v. California

A landmark Supreme Court case in 2014 that held that police must obtain a warrant before searching the digital contents of an individual's cellphone during an arrest.

Marbury v. Madison

A landmark U.S. Supreme Court case from 1803 that established the principle of judicial review, allowing courts to strike down laws unconstitutional.