Checkable deposits are money because they are

Question

Quizplus · Accepted Answer

Checkable deposits are considered money because they are acceptable as payment. They can be used to make purchases, pay bills, and transfer funds between accounts. Legal tender refers to currency that is recognized by law as a valid means of payment, but checkable deposits are not considered legal tender. Fiat money is currency that is not backed by a physical commodity, but checkable deposits are not considered fiat money as they represent actual funds held in a bank account. Token money refers to physical coins or currency with a face value that exceeds its intrinsic value, but checkable deposits are not considered token money as they are not physical currency.

Checkable Deposits Are Money Because They Are