Some economists include time or savings deposits in the money supply because
A) these deposits can be readily transformed into cash.
B) these deposits can be used as collateral for loans.
C) the value of time deposits is measured in dollars.
D) there is no difference between the various types of bank deposits.
E) savings and loan institutions have the same status as commercial banks.

Question

Quizplus · Accepted Answer

Time or savings deposits are included in the money supply because they can be readily transformed into cash. This means that they are highly liquid and can be easily used to make purchases or pay bills.

Some Economists Include Time or Savings Deposits in the Money