Checkable deposits are money because
A) only banks and other financial institutions can offer them.
B) they are protected by the Federal Reserve.
C) they are guaranteed by banks.
D) they can be converted into currency on demand and are used directly as a means of payment.
E) checks bounce when there are not enough funds to cash them.
Correct Answer:
Verified
Q28: A commercial bank's main goal is to
A)open
Q29: If the Fed sells government securities to
Q30: During the 2008 financial crisis, banks restricted--------------------and
Q31: The desired reserve ratio is 3 percent.
Q32: The Fed buys $100 million U.S. government
Q34: Actual reserves are equal to
A)required reserves plus
Q35: Money market mutual funds
A)are included in M1
Q36: --------------------like a check and--------------------considered money.
A)E-checks work;
Q37: Suppose the currency drain ratio is 33.33
Q38: Excess reserves are the
A)same as the required
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