Checking deposits are considered a form of money because
A) any bank asset is considered money.
B) checking deposits are as large as the sum total of coins and currency.
C) they are used in calculating national expenditures.
D) they are assets of the Federal Reserve System.
E) they are generally accepted and serve the same functions as coins and currency.

Question

Quizplus · Accepted Answer

Checking deposits are generally accepted as a form of payment and can be used to make purchases, pay bills, and transfer funds between accounts. They also serve the same functions as coins and currency in terms of facilitating transactions. Although they are not physically tangible like coins and currency, they can be easily transferred and accessed through electronic means, making them a convenient and widely used form of money.

Checking Deposits Are Considered a Form of Money Because