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

Question

Quizplus · Accepted Answer

Checks are not considered money themselves; they are instruments used to transfer money from one account to another. Money, in the context of the money supply, refers to physical currency and balances in checking and savings accounts, among other forms.

Checks That People Write Are