In the United States, the medium of exchange encompasses currency, which is issued by the Treasury or the Fed, and demand deposits, which support payment by means of checks and are held at depository institutions such as commercial banks.

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This statement is true. Currency and demand deposits are the two most common forms of money used as medium of exchange in the United States. Currency is printed by the Treasury and coins are minted by the Fed. Demand deposits are held at depository institutions such as commercial banks and savings and loan associations, and can be accessed through checks, debit cards, and electronic transfers.

In the United States, the Medium of Exchange Encompasses Currency