Although checking deposits are considered money, they are actually
A)fictitious numbers in persons' checkbooks.
B)backed by commodities like gold.
C)not very useful for making payments.
D)bookkeeping entries in bank balance sheets.

Question

Quizplus · Accepted Answer

Checking deposits are not physical cash or coins, but rather they are bookkeeping entries in bank balance sheets. They represent the amount of money that the bank owes to the account holder. While they are considered money, they are not backed by commodities like gold and may not be easily used for making payments.

Although Checking Deposits Are Considered Money, They Are Actually