Checks are
A) the largest component of the money supply.
B) only part of M2 but not part of M1.
C) not money.
D) part of M1 but not part of M2.

Question

Quizplus · Accepted Answer

Checks are not considered "money" because they are not directly accepted as a medium of exchange. They must instead be deposited into a bank account, where they will eventually be converted into currency or electronic funds. Checks themselves cannot be used as a means of payment without being first converted.

Checks Are