The demand for checking deposits depends
A) positively on the price level.
B) positively on real GDP.
C) negatively on the market rate of interest.
D) positively on the rate of interest paid on checking deposits.
E) all of the above.

Question

Quizplus · Accepted Answer

The demand for checking deposits is influenced by multiple factors: it increases with higher price levels (A), higher real GDP (B), and higher interest rates on deposits (D), while it decreases with higher market interest rates (C).

The Demand for Checking Deposits Depends