Checkable and debitable accounts in commercial banks and other financial institutions are classified as money because
A) they are not liabilities of the banks.
B) they sometimes earn an interest income for the depositor.
C) they are generally acceptable in the payment of debt.
D) banks hold currency in their vaults equal to the value of demand deposits.
C
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If it is impossible to prevent someone from benefiting from a good regardless of whether or not the person paid for it, then the good is
A) nonrival. B) rival. C) nonexcludable. D) excludable.
The type of firm that is most numerous is the
A) proprietorship. B) corporation. C) partnership. D) multinational.
Suppose that when disposable income increases by $2,000, consumption spending increases by $1,500. Given this information, we know that the marginal propensity to consume (MPC) is
A) .25. B) .75. C) $1,000/$750 = 1.33. D) 1/.25 = 4.
The Bureau of Labor Statistics counts underemployed persons as those who are currently working:
A. less than they would like to be. B. in a job for which they are overqualified for. C. less hours than their employer requires full-time workers to work. D. in a field that doesn’t add a lot to overall GDP.